What is a principal curtailment?
A principal curtailment is an unscheduled additional payment to the current outstanding loan balance.  This additional amount may reduce the life of your loan. The account must be current for the curtailment to be allowed.    Q. What is PMI? A. PMI, or private mortgage insurance, is a required insurance premium paid to insure the mortgage when the down payment is less than 20% of the purchase price. Mortgage insurance usually requires an initial premium payment and may require an additional monthly premium which is paid as part of your escrow payment. The premium protects the lender against loss in the event of default or foreclosure of the mortgage.   PMI Waiver Policy In accordance with the Home Owner’s Protection Act of 1998 the following criteria has been established for Private Mortgage Insurance waiver for owner-occupied residential properties:   Your current loan-to-value ratios must be equal to or less than 80% based on the lower of the original sale price o
Related Questions
- What options, other than making a principal curtailment at closing, are there for proceeds remaining from the refinance that exceed the allowable amounts?
- How do I document when excess proceeds from a refinance transaction are applied as a principal curtailment at closing?
- What is a principal curtailment?
