How To Remove PMI From Your Mortgage

PMI

Are you curious how to remove pmi from your mortgage? PMI or Private Mortgage Insurance is simply a insurance policy that a borrower is required to pay in premiums that protect the lender in case of default. If you are a home buyer and would like to borrow more than 80% of the value of the home, PMI is required.

If you do not have the required 20% down payment on a home, PMI is a insurance policy you will need to pay. In 2013, PMI was made a tax deduction again when the deduction was extended. It was introduced back in 2007 and expired in late 2011. The extension may not be forever but it sure helps the reputation of PMI for now.

Many others see PMI as throwing money away. If you did not have the required 20% down, have a high credit score and make your monthly payments on time each month, you might feel this way. PMI is a policy you pay in case you default. If you feel there is not way you would default, have a great pay history, you will want to get rid of the PMI payments as soon as possible. There are a few ways you can accomplish this.

According to the CFPB (Consumer Finance Protection Bureau) there are guidelines a lender must follow.

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You can request cancellation of PMI is one way. Once you have reached the required 80% of the original home value, you can request a cancellation. You can stop by and ask your lender the amount you have left to reach the 80% or the date in which the PMI will go away. Many homeowners do not want to wait. If you do not want to wait until you reach the 80% you can ask to cancel. In order to cancel generally a lender will ask a few things from you. The main things you must have to get the PMI taken away is that first and foremost, your monthly payments must be made on time with not late payments. Another important thing is that your lender might ask that you get a new home appraisal to make sure your home value has not decreased and if you now meet the 80% requirement.

There are sometimes a few other requirements a lender will ask as well. One is that the cancellation of PMI must be given to them in writing. They may also ask if you have a second mortgage on your home. If this is the case, they may decline the PMI cancellation.

You can also have PMI cancel by itself. Once you reach the 78% requirement lenders have no choice but to terminate your PMI and PMI premium payments. You will need to be current on your monthly mortgage payments for this to be terminated automatically.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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