Can I Remove PMI From My Loan?
Private Mortgage Insurance can add a significant added expense per year to mortgage rates. Therefore, it’s worth learning when you are eligible to cancel!
For loans closed after July 29, 1999 Private Mortgage Insurance – PMI – can be removed automatically, or by request.
Provided your monthly payments are up-to-date your lender must terminate PMI when your principal balance reaches 78 percent of the original value of the home; or if you reach the midway point of the loan term such as 15 years on a 30-year loan.
Consumers also have the right to request PMI cancellation when principal balance reaches 80% of original value.
Ask your lender for the date that balance will be reached. If you are current in your payments, request cancellation in writing. Follow the steps outlined by your lender and keep copies of all documents and correspondence.