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if paid for 5 years does pmi cancel automatically?

jenkin7 · Posted: Thu Mar 11, 2010 10:16 pm Post subject:

Hi jt,

You can cancel your private mortgage insurance (PMI) once the value of your mortgage reaches 78% of the current value of your property, provided you have the mortgage for at least 2 years. Similarly, you can cancel the PMI if you have the mortgage for at least 5 years and if the LTV ratio reaches 80% of the home's current value.

justinkennedy · Posted: Fri Mar 12, 2010 11:32 am Post subject:

to clarify - it is 78% of orginal value. Mortgage insurance is insuring that note based off orginal value.
call your provider of PMI ask thier process. if this FHA you are required to maintian FHA MIP for 5 years

eric1 · Posted: Sat Mar 13, 2010 4:10 pm Post subject:

Everything mentioned above is not entirely accurate so let me set things straight....

Non-FHA Loans - You can request PMI to be cancelled once you have paid the loan down to 80% of the original value. However, you need to be in good standing...no late payments. If you do not request PMI to be cancelled at 80%, then the lender is REQUIRED to cancel it once your loan balance reaches 78%.

FHA - MIP is mandatory for 5 years as mentioned above.

jveenstra · Posted: Tue Mar 16, 2010 9:35 am Post subject: PMI

Did you get a copy of your Truth-in-Lending document during the processing of your mortgage or at closing? If it was completed properly, it tells you at what point your mortgage cancels automatically.
It dos NOT cancel automatically after five years if your down payment was absolute miniumum, that could be anyhwere from 5% down to zero down, we do not know your mortgage.
You should also have been given by the lender an amortization schedule in addition to the TIL which shows when the loan balance hits 78% of the lesser of the orignal purchase price or appraised value.
Your PMI may or may not cancel at 5 years. We do not know enough details about your mortgage to answer the exact time. It could be more or less than five years or exactly at five years.
If you want us to tell you exactly, you need to tell us: purchase price, appraised value at purchase, mortgage balance at purchase, FHA or conventional mortgage, interest rate, fixed rate mortgage or ARM.

JAYCUE · Joined: 16 Mar 2010 Posts: 4 1.78 Dollars($)

In reality, to cancel the PMI you should ask and request it from your mortgage company. They will tell you at what percentage of your loan you should have before they will cancel it.

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