Profile picture for latuya

How long do I have to pay PMI on my mortgage. Been in it for 8 years now. how can I cancel it?

  • June 11 2011 - San Diego
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Answers (7)

Profile picture for Grant Gerhart
Federal law states that it will automatically fall off once your LTV reaches 78%. Now you can call and request them to take it off once it hits 80%. Do some research in your area, and see where values are at. Zillow is a good place to start for that..

Have you thought about just doing a streamline refinance? You could substantial lower your monthly payment even with the PMI payment. Interest rates are in the 3% range.[self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • September 13 2012
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In most cases you can remove PMI with 20-25% equity in your home, but you must contact the bank and ask them to stop charging. As wrong as it is, they will continue to collect your money and do not automatically drop the PMI. 
  • September 13 2012
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Profile picture for user9875113
So if i buy a house and put work into it, making it appraise at 20-25% more then the original the PMI goes away?
  • September 13 2012
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You probably waited to long depending on the value of the home presently. Most are upside down having purchased 8 yrs ago. Your present value has to be 20% more than the loan balance to have it dropped. The key is 80% loan to value. You will need to get a full appraisal to determine the value but a local Broker can give you an idea of value with a broker price opinion for $50-100 bucks which is the cheapest way. If you have a realtor friend they can search comparable values for you for? 
  • June 13 2011
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You'll pay it until you have 20% or so in equity, which could take some time if prices decline, even a little. You'll really have to stay on top of values in your neighborhood, and I don't mean by using Zestimates, they have to be more accurate.

You might stand a better chance if you get a good Comprehensive Market Analysis, including wiggle room for declining prices in your neighborhood. Back that up with an appraisal, and you might have a chance. You can give your appraiser a copy of the CMA so those properties won't be left out, especially if they support your claim.

Good luck!
Cory

  • June 13 2011
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Mortgage insurance is meant to protect the lender against a borrowers default.  If there is enough equity in the home and the borrower can no longer make the payments, the borrower can sell and pay off the debt.  But in cases where there is not enough equity in the home, if the borrower gets in trouble, the home can not be sold, mortgage insurance kicks in for the lender.

Therefore, whether or not you can remove MI is dependent on whether or not your lender believes there is enough equity in the home to protect their investment in you the borrower.  It used to be that 20-25% equity could be justification enough to remove MI.  However, if you live in a market that is continuing to decline, that will play into the overall risk equation. 

Check with your lender, complete an appraisal (ordered by lender - paid by you) and see where you stand on equity. 
  • June 12 2011
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Profile picture for MyaBerlyant

Contact your bank. They will send an appraiser to assess the value of your property (you will need to pay for the appraisal).

If you've paid off a good amount in the last 8 years (and you're not upside down on your mortgage loan) - you should be able to succeed.

  • June 11 2011
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