by nygoal40 » Tue Mar 30, 2010 06:57 pm
SO say you get a good deal on a home
Maybe pay 100,000 for a home worth 150,000
Putting 10,000 down paying the pmi to start borrowing 90,000
When does that equity kick in or do you pay the pmi until you pay off 20% of the loan amount?
Maybe pay 100,000 for a home worth 150,000
Putting 10,000 down paying the pmi to start borrowing 90,000
When does that equity kick in or do you pay the pmi until you pay off 20% of the loan amount?
Posted: Tue Mar 30, 2010 08:44 pm Post Subject:
Mortgage companies are required to remove PMI at 78% LTV (Loan to Value) but you may have to provide them documentation for it to be removed at this amount. At 80% they should automatically remove it. In both cases you need to meet other criteria, such as having the loan current, etc.
You need to call your mortgage company and ask them this question to know for sure.
Note: I think I have those percentages correct and not backwards.
Posted: Tue Mar 30, 2010 09:54 pm Post Subject:
All I'm sayin' is this..We've purchased six or seven homes...paid pmi on four (i think) of them...NEVER one time did our lenders remove the PMI automatically, without me calling them and saying, 'hey bub! we're below 80% now, how about dropping that PMI?' :x which they always did... now, that being said, that's also been about 15 years ago too, so somethings may have changed in that amount of time.
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