How Do I Get Rid Of PMI

By
Real Estate Agent with TIM LORENZ - Elite Home Sales Team DRE# 00919781

Many of my clients want to know how they might get rid of PMI.  In  order to get rid of the PMI (Private Mortgage Insurance) there are a few thing you need to know.

PMI, is generally required by the lender or the investor when the borrower does not have a 20% down payment. More precisely, mortgage insurance is required when the loan-to-value exceeds 80% of the sales price. The borrower has the right to cancel their mortgage insurance when certain requirements are met. This can happen automatically or by requesting the lender to cancel.

The borrower's PMI will be automatically cancelled by the lender when both of the following conditions are met: 1) the mortgage balance is 78% of the home's original value and 2) all payments had been current on the loan.

The borrower can send the lender a written request to cancel the PMI when all of the following conditions are met: 1) the mortgage balance is 80% of the original value of the property 2) the mortgage payments were paid in a timely manner 3) no other loans have been taken out on the home and 4) the property value of the home has not declined.

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Topic:
Mortgage / Finance
Location:
California Orange County Mission Viejo
Groups:
Realtors®
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Tags:
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Rainmaker
423,101
Rodney Mason
Guaranteed Rate NMLS# 2611 - Atlanta, GA
VP of Mortgage Lending - AL, FL, GA, SC, & TN

Most are going to require that the borrower pay MI for a minimum of 24 months with no late payments.  On an FHA mortgage, HUD requires that 60 payments be made before the MI can be dropped.

Mar 20, 2011 07:36 AM #1
Rainmaker
1,023,809
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Rodney thank you for the info and coming by.

Mar 20, 2011 07:40 AM #2
Rainmaker
855,163
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Thank you Tim

I was doing some research found this blog it was helpful.

Dec 20, 2011 08:18 AM #3
Rainmaker
1,023,809
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Alway glad to help you out with info on our area.

Dec 20, 2011 05:42 PM #4
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Rainmaker
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Tim Lorenz

949 874-2247
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