Page 12
December 2005
The AC Phoenix
Roslyn S. Lash, GRI
FIRSTCLOSING
By Roslyn S. Lash, GRI
Q. I purchased my 1st house approximately
10 days ago, and my heating system is no
longer working whom should I call?
A. If a HOW (homeowners warranty) was
provided by the seller or you purchased one
yourself, you may contact the warranty
company directly. A HOW is a optional
insurance which guarantees that the major
components of the property is in the same
working condition as on the day of closing.
HOW is for recently purchased
Q. I recently received notification in the mail that my bank will no
longer service my loan, and that all questions, along with my monthly
mortgage payments must be sent to an out-of-state lender. Why has
this happened, and how does it affect my mortgage?
A. A local lender may originate the mortgage, or begin the loan
process. It is not, however, uncommon for a different lender to acquire
the loan after closing. Fannie Mae is the Federal National Mortgage
Assoeiation and Freddie Mac is the Federal Home Loan Mortgage
Corporation. They are the two primary investors in home loans, in
order to stimulate the local economy Fannie Mae, and Freddie Mac buy
and sell mortgages. This keeps the money flowing so that the local
lenders can
Q. PMI has been included in my monthly mortgage. What
exactly is PMI?
A. PMI stands for Primary Mortgage Insurance, it is a form of
insurance designed to protect the lender should you default on your
loan. When a buyer?s puts less than 20% down on a property, the
lender usually require insurance. Mortgage experts feel that buyers
that contribute less than 20% down towards their home are higher
candidates for foreclosure. Therefore you will pay monthly PMI
premiums until you have approximately 20% equity in the property.
The duration of PMI may
vary depending on the type of loan.
Some FHA mortgages require that
the insurance be paid for 10 years.
Cancellation of your PMI may not be
automatic. You should contact
your lender once you have reached
the 20% equity mark, or if you have
had your property for 10 or more
years. You may be required to
obtain an appraisal as proof of your
increased market value.
A word to the wise- if a lender states
that PMI is not required by their
institution. Compare rates! Their
interest rate may be 0.5% higher,
which will result in a much higher
mortgage over the life of the loan.
Q. If I get the PMI do I still
need a Homeowner?s Policy?
A. Definitely! PMI is for the
protection of lending institutions
and their investors in case you
should default on your loan. PMI
does not protect the Buyer. A
Homeowner?s policy does protect
the buyer/homeowner against
disasters such as fire, theft, water,
and weather related accidents.
Unless you purchased yo
Roslyn Lash is a REALTOR
with over 10 years of experience.
Should you have any questions,
please email her at
FirstClosing@yahoo.com, or call
655.5701.
REP. LARRY
WOM8LE
NC House of Representatives
71st District
Tel (336) 784-9373
Fax (336) 784-1626
E-mail; LWistm@aol.com
Home Address;
1294 Salem Lake Road
Winston-Salem, NC 27107
Colorful]
History
Nelson
Mandela
Former South African President
Nelson Mandela, 87, and the
Nelson Mandela Foundation, is
reaching out to youth through a
new comic book series aimed at
encouraging literacy. Nine
colorfully illustrated books will be
created in the series, telling the
story of the life of Mr. Mandela.
The first book explains his royal
upbringing in rural Transkei. The
series is completed with his
setting up of South Africa’s first
Black law firm and his leadership
of the African National Congress.
The first edition will be in English,
and the foundation plans to
translate it into all of South
Africa’s eleven official languages.
“Proud to Serve You”
Bus Stop
Barber aid Hav Styttrt
Have Happy Holiday
We Have Openings for
• Barbers
* Beauticians
• Braiders
• Seamstress
G.A.Hiao*
Omer/Mmiger
1312 E. 4ik $tn« • Wintoa-Slk>^ NC
(33«)722-l»»2
We do Eye Brows
Hot Lather Shaves
Open; Tuesday - Friday 9-6
Saturday 8-4 :
Closed Monday
We hope the message of love and the true spirit of the
season makes its way into each heart in every land.
Goodwill Baptist
Church luc.
Rev. P.A. Samuels,
Pastor
Prophetess Gloria
Samuels, First Lady
548 Goodwill Road • Arcadia Community •
North Davidson County • Clemmons, NC
website; www.goodwillbaptistchurch.org
Sunday Morning Worship; 10;45am
• Sunday School 9;45am
Wednesday Bible Study; 9;45am and 7;00pm