How to Remove Private Mortgage Insurance
Without Refinancing
Are you a homeowner with a mortgage that currently has PMI ... Private Mortgage Insurance?
To qualify you must meet the following criteria when requested by you the borrower (versus automatic termination by the Loan Servicing Company):
- Your mortgage is 5 years old ... and you've achieved 80% Loan-to-Value (LTV)
- Your mortgage is at minimum two (2) years old and you've reached a 75% Loan-to-Value of current appraised value
- You are in a Borrower-paid monthly PMI option
For borrower-requested termination of PMI: This form of termination is different than automatic cancellation done by the servicer of your mortgage loan. The date that you are eligible for termination of PMI should have been provided to you at the time of your loan closing.
For automatic PMI termination: Your mortgage loan servicer will drop your PMI automatically when the Loan Balance reaches 78% of the ORIGINAL Value of the home at time of purchase (or refinance), assuming the loan payments have been made on time and the loan is at least 2 years old.
You can request termination of PMI earlier also, if you meet this criteria:
- If you have made additional payments to your mortgage that have reduced the principal balance of your mortgage to 80% of the original value of your home
- If you have reached the threshold for PMI termination prior to the date provided you at your closing
A request to terminate must be made in writing. And again, certain criteria must be met in order to successfully complete the termination of your PMI.
However, it should be noted that other criteria may also be in place, depending on the type of loan you have. For this reason, it's best to reach out to your lender in advance to receive the specifics surrounding your personal financing/termination scenario.
No matter the method, it's good news for mortgage holders that methods for termination of Private Mortgage Insurance (PMI) outside of refinancing exist and can be available to them.
To find out the availability and full-menu of options available to you, reach out to your lender today.
Looking for mortgage financing answers, options, solutions, and experienced assistance?
Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator -NMLS #216987 - IL Lic. 031.0006220 - WI License #216987
American Portfolio Mortgage Corp
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:
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