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883 Views | 2 Replies | Last: 3 yr ago by Aggiehunter34
Gabster43213
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Is it still possible to drop PMI from the loan on your primary residence once you have reached the 20% equity mark?
PeekingDuck
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AG
Generally auto drops at 78%, from what I recall.
RockOn
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Straight from the Homeowners Protection Act...

Quote:

the borrower may submit a written request to cancel PMI as of the date that, based on the initial amortization schedule, the principal balance is first scheduled to reach 80% of the original value of the mortgaged property, regardless of the outstanding balance of the mortgage, or based on actual payments, when the principal balance reaches 80% of the original value of the mortgaged property (or any later date) and the borrower has a good payment history, is current on payments, and has satisfied the lender's requirements that the value of the mortgaged property has not declined and is unencumbered by subordinate liens
or....
Quote:

PMI will automatically terminate on the date that, based on the amortization schedule and regardless of the outstanding balance of the mortgage, the principal balance is first scheduled to reach 78% of the original value of the mortgaged property if the loan is current or on the first day of the first month after the date that the loan becomes current

;tldr - either automatically at 78% LTV or with your written request at 80%. Search online for a good form letter to submit to your lender.
Aggiehunter34
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S
Gabster43213 said:

Is it still possible to drop PMI from the loan on your primary residence once you have reached the 20% equity mark?
Do you have a conventional loan? Loan type will matter in regards to if you can drop PMI or not.

Feel free to email me any questions you may have.

bbailey@gomycity.com

Brian
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