PMI REMOVAL REQUIREMENTS

Private Mortgage Insurance Removal

  • Lower your mortgage payment with refinancing?

  • Stop Paying Private Mortgage Insurance!

What is Private Mortgage Insurance (PMI)

When you originally purchased you home, did you put 20% down?  If not, you are probably paying private mortgage insurance.  Fact is, most homeowners are still paying for this type of insurance in their monthly mortgage payments and don’t even know it. The good news is, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less, and we can help.

PMI is extra insurance that lenders require from most homebuyers who obtain loans that are more than 80 percent of their new home's value. In other words, it provides protect to the lender should you default on your loan

Cancellation

Under HPA, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.

Automatic Termination

Under HPA, mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan. If the loan is delinquent on the date of automatic termination, the lender must terminate the coverage as soon thereafter as the loan becomes current. Lenders must terminate the coverage within 30 days of cancellation or the automatic termination date, and are not permitted to require PMI premiums after this date. Any unearned premiums must be returned to you within 45 days of the cancellation or termination date.

For high risk loans, mortgage lenders or servicers are required to automatically cancel PMI coverage once the mortgage is paid down to 77 percent of the original value of the property, provided you are current on your loan.

If you qualify, Paige Appraisals can help eliminate your Private mortgage insurance payments once and for all. Call now for a free consultation or Click here to schedule a PMI removal Appraisal.