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When does PMI cancel on all new conventional loans?

When is the soonest I could canncel PMI?  It is  a conventional loan that I will sign Monday.Is there a minimum time I must pay in months ?
Are all lenders on conventionals the same or can rule change from each lender in todays rules?
I thought new loan rules might have changed some?
Or can I just pay it down quick to 78 % of apraised value then ask for cancelation.
This is a refi. of 197k w a appraisal of 212k
  • April 21 2013 - Chester Springs
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Answers (7)

Best Answer

All conventional loans are different.  Most are when ever you hit 22% equity and you have valid appraisal showing that. Some will require a minimum time in the property (Most Ive seen with this require 12 months of payments).

Your lender should be able to give you the best answer though, as they will be the most familiar with your terms.  

Good luck!
  • April 21 2013
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Profile picture for Mike Bottaro
Hahaha. I am sorry but I had to laugh about the comment "I don't care about Fannie Mae or her sister". Can I at least perfect the joke and say ".. or her brother, Freddie" ?? LOL
  • April 24 2013
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Everyone is on spot.

You need to talk to your current lender.
  • April 23 2013
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A straight up Conventional is Fannie or Freddie, Norm's answer is the accurate answer.    
  • April 22 2013
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I don't care about Fanni May or her sister...
I'm doing a straight up Convent..

I will go to the lender but lender drags their feet on answers sometimes...

Just wanted to get a idea..  of things

Thanks for answers.. from all.
  • April 22 2013
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The Fannie Mae servicing guide states that for borrower initiated PMI removal the previous 24 months payments must have been made on time (paraphrased) which by that requirement alone means you'll have the PMI for at least 2 years; then in the 3rd through 5th year the LTV must be 75%; afterwards it can be 80%. 


I took the liberty of abridging the requirements; if you go to the Fannie Mae web site you can look up the full requirements.


  • April 22 2013
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It sounds like your new PMI will be monthly. Have you looked into Borrower Paid Single Premium MI? Instead of paying it monthly, you can pay it upfront and avoid the monthly PMI. The Single Premium MI can be financed into your loan.
  • April 22 2013
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