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Showing posts from September, 2015

Private Mortgage Insurance

Are you paying private mortgage insurance?Private mortgage insurance, or PMI, is usually required when homebuyers have a downpayment less than 20% of the sales price or appraised value of a property. This is money you don't have to pay once your principal balance of the mortgage reaches 80% of the original value of the property. If you have paid extra toward your principal you might be eligible to terminate the mortgage insurance.
Lenders are legally required to automatically terminate mortgage insurance when the principal balance of the loan reaches 78% of the original value of the property. However, lenders sometimes inadvertently collect money after the termination date, so it's important for homeowners stay aware of their payment progress even if they aren't trying to speed up the process. As noted, in addition to reaching the 80% loan-to-value (LTV) threshold, the borrower must meet certain other requirements for borrower-requested cancellation:  • The borrower must have…