Frequently Asked Questions
Borrower Requested Cancellation Based On Original Property Value
You may request in writing to cancel MI when either:
(i) the Principal Balance of the Mortgage Loan is scheduled to reach 80% of the original value of the Mortgage Property (regardless of the current unpaid Principal Balance) based on the initial amortization schedule; or
(ii) the unpaid Principal Balance reaches 80% of the original value of the Mortgage Property based on actual payments.
The loan must be current at the time MI cancellation is requested, meaning the payment for the month prior to the date of the cancellation request must have been paid.
(a) must not have made any payments that were thirty (30) days or more past due in the prior twelve (12) months, or
(b) payments that were sixty (60) days or more past due within the first twelve (12) months of the last two (2) years prior to the date the Borrower requests cancellation.
There are no requirements for a loan’s seasoning before the Borrower may request cancellation; however, if the loan is seasoned less than two (2) years, the payment history criteria must be applied to the length of time since the loan’s origination.
For example, a loan that qualifies for Borrower requested cancellation that is seasoned six (6) months is eligible for cancellation so long as there have not been any payments that were thirty (30) days or is eligible for cancellation so long as there have not been any payments that were thirty (30) days or more past due. As another example, a loan that qualifies for Borrower requested cancellation that is seasoned fifteen (15) months is eligible for cancellation so long as there have not been any payments that were thirty (30) days or more past due within (12) months of the request or sixty (60) days or more past due in the thirteen to fifteen (13-15) months prior to the request.
CIFI is required to obtain evidence that the value of the Mortgaged Property has not declined below the original property value. The property valuation may only be used to determine whether the value of the Mortgaged Property has declined below the original value. CIFI may pass on the property valuation fee to the Borrower.
The Borrower must certify that their equity in the property is not subject to any subordinate lien.
CIFI will not require further MI premiums more than thirty (30) days after the date the Borrower request is received or the date on which Borrower satisfies the requirements for establishing current value and certification as to subordinate liens.
Borrower Requested Cancellation Based On Current Property Value
The Borrower may also request in writing to cancel MI based on the current appraised value of the Mortgaged Property if the Mortgage Loan is a one-unit Primary Residence or second home that is:
• Seasoned less than two (2) years if the Borrower has made improvements to increase the value of the Mortgaged Property, the Appraisal specifies the improvements that were made and contains commentary on their effect on value, and the LTV is 75% or less, based on the current appraised value.
• Seasoned between two (2) and five (5) years with an LTV ratio of seventy-five percent (75%) or less, based on the current appraised value.
• Seasoned five (5) years or more with an LTV ratio of eighty percent (80%) or less, based on the current appraised value.
The loan must be current at the time MI cancellation is requested, meaning the payment for the month prior to the date of the cancellation request must have been paid. The Borrower must not have made any payments that were thirty (30) days or more past due in the prior twelve (12) months, or payments that were sixty (60) days or more past due within the first twelve (12) months of the
last two (2) years prior to the date the Borrower requests cancellation. If the loan is seasoned less than two (2) years, the payment history criteria must be applied to the length of time since the loan’s origination.
The Borrower must certify that their equity in the property is not subject to any subordinate lien.
CIFI will obtain a new Appraisal with an interior and exterior inspection that meets CIFI’s Appraisal requirements and must receive the results directly from the appraiser. CIFI may pass on the Appraisal fee to the Borrower.
Refinance Your Mortgage
Should you refinance? The answer depends on two factors: the age of your loan, and the difference between your current and potential new interest rate.
Home loans amortize, which means you pay mostly interest towards the beginning of the loan term and mostly principal towards the end of the term. As a result, the interest rate is most important towards the start of a term. The interest rate makes less of an impact towards the end of the term when your payments are predominantly principal. Translation: the newer the mortgage, the stronger the argument that you should consider refinancing.
But refinancing turns the amortization clock back to square one, and also gobbles a few thousand in closing costs, so a small difference between your old and new interest rates—say, 0.25 percent—might not be justified. Run the numbers to see if refinancing is right for you if the interest rate spread is 0.5 to 1 percent or higher.
Drop Your PMI
Are you paying private mortgage insurance or PMI? If you bought your home with a down payment that's less than 20 percent, you might be paying PMI. It adds hundreds or thousands to your mortgage each year.
There's good news, though: I you have a conventional mortgage, you won't be stuck paying PMI forever. First, repay enough of the mortgage that you've gained 20 percent equity in the house. (You can also gain equity faster if your home value rises—but, of course, you have no control over that.)
Then take a look our process for getting rid or you PMI.
Get a Longer Loan
Suffering under the hefty monthly payments that come with 15-year or 20-year mortgages? Extend your mortgage into a conventional 30-year term to cut your monthly payment.
The bad news: Your interest rate will rise. The good news: you can still choose to make additional payments on the mortgage as if you were paying a 15-to-20-year loan. These extra payments will help you satisfy the loan more quickly, without obligating you to make massive payments if, say, there's an emergency that leaves you cash-shy for a month or two.
Challenge the Tax Assessment
Here's an uncommon way to lower your monthly home payment: Fight the tax assessment.
A conventional mortgage payment consists of your principal payment, your interest payment, and your "impounds," which is a monthly payment that the lender puts towards your property taxes and homeowners insurance.
If you default on your property tax bill, the county can put a lien on your house. The government's lien will take priority over the lender's lien.
As a result, the lender collects your property taxes each month to protect its interest in your home. This payment sits in escrow until the yearly property tax bill is due. Property tax is based on the county's tax assessment of how much your home and land is worth.
Many of these assessments are too high, especially in the wake of the housing crash, which diminished home values. Sometimes assessments are also too high if the area has been re-zoned, the new zoning has caused home prices to decline, and the declined prices aren't reflected in the assessment.
Homeowners can protest the assessment by filing a protest with the county or requesting a hearing with the state Board of Equalization. If the protest is approved, the homeowner's taxes drop, which means that their monthly mortgage payment also drops.
(Note: an "assessment" is different from an "appraisal." The county does an assessment for tax purposes. A private company does an appraisal, generally for loan and purchasing purposes.)
Pay Online through your Bank account
Go to Bank's Website and sign up for Online Banking and Bill Pay.
Pay by Check
Pay via check and include the coupon from your monthly billing statement.
Fill out our ACH Form and we will deduct your payments automatically from your bank account.
Also referred to as impounds or reserves. They are funds held by us to make payments for your homeowners insurance and property taxes. We will collect them monthly along with your loan payment and then pay the tax and insurance bills when they are due. That’s because your we have a vested interest in making sure those payments are made. You may hear the term “prepaids” as well. That’s money collected in advance for those bills to ensure we have enough on hand to pay them when they are due.
For FHA borrowers the maximum loan amount varies from county to county. Please use the link below to find the maximum amount in your area.
FHA Loan Limits
For Conventional borrowers, the maximum conforming loan limit is $484,350.00 in most areas. Some areas are a little higher. You can check your are using the link below
Conforming Loan Limits
Yes, but know that any lender credit that we give you towards your closing costs comes at a price. In order to get the credit, we will raise your interest rate. The higher the credit, he higher your rate will go.
This is great if you're a little short cash to close on your dream home, but you will pay for it throughout the life of the loan.
“Prepaids are not a closing cost or a fee. They are the borrower’s own funds being put into an escrow account for the purpose of paying taxes and insurance.”
Don't be fooled by deceptive advertising. The only borrower that can get 100% financing are veterans as long as they qualify for a VA loan.
You can however get a gift from a family member for the entire amount of the down payment so you don't have to use any of your money.
You're still responsible for the closing costs, unless you can negotiate a credit from the seller, realtor, mortgage company or a combination of all three.
Fannie Mae and Freddie Mac have stricter criteria when a condominium is located in Florida. One is the amount of down payment required for a "limited" review.
The main reason for this is not because of the borrower, but the condominiums. It's based on multiple factors include the amount of reserves the condo has, the number of units owned by one person, the amount of units that are rentals, etc.
Lately, however, Fannie and Freddie have eased up a little and it's somewhat easier to finance a condo with little down.
FHA is even more difficult. Very few condomiumns are FHA approved in Florida
Capital International Financial first opened it's doors on January 22nd, 1981 at 395 Alhambra Circle in Coral Gables, Fl. That building is still our main office today.
Getting pre-approved usually takes less than one hour, but never more that one day.
Getting Underwriter approval takes 48 hours from the moment your application is submitted.
How Can I Remove my Mortgage Insurance?
How can I lower my monthly payment?
Ways To Make Your Mortgage Payment?
What is escrow and how does it work?
What is the maximum you can lend?
Can you give a credit towards closing cost?
What are Prepaids?
Is there a zero down for first time buyer?
Why so much down for a condo in Fllorida?
What determinants my interest rate?
How long have you been in business?
How long does it take to get Approved?
Capital International Financial, Inc.
NMLS # 1036987