Posted on: 16th Jan, 2010 12:03 am
I been in my home almost 2 yrs, when will i be able to remove pmi and is there more than 1 way to do so?
Hi deeva,
In order to remove the PMI, the loan-to-value (LTV) ratio on your mortgage must reach 78% the actual sale price or the appraisal value, lesser of the two. It can be achieved in two ways. If you make normal payments as per the amortization schedule, the LTV will reach the 78% mark at some point in time. You can then ask your lender to cancel the PMI. Alternatively, you can make extra payments towards the loan to reduce the LTV ratio and remove the PMI faster.
Thanks,
Jerry
In order to remove the PMI, the loan-to-value (LTV) ratio on your mortgage must reach 78% the actual sale price or the appraisal value, lesser of the two. It can be achieved in two ways. If you make normal payments as per the amortization schedule, the LTV will reach the 78% mark at some point in time. You can then ask your lender to cancel the PMI. Alternatively, you can make extra payments towards the loan to reduce the LTV ratio and remove the PMI faster.
Thanks,
Jerry
I would like to chime in on that.
The lender automatically removes the mortgage insurance when your loan to value is 78%...meaning you have 22% equity in the property.
If you feel that the value of your home has reached 20% equity, 80% ltv, you can call the lender and request that an appraisal be completed, this will be at your cost. The lender will advise you of what procedures you need to follow.
The lender automatically removes the mortgage insurance when your loan to value is 78%...meaning you have 22% equity in the property.
If you feel that the value of your home has reached 20% equity, 80% ltv, you can call the lender and request that an appraisal be completed, this will be at your cost. The lender will advise you of what procedures you need to follow.
Welcome back Elnora...where have you been?
changed companies...just been very busy.