Posted on: 15th Feb, 2011 11:37 am
What are the terms of PMI cancellation?
PMI is either "terminated" automatically or "cancelled" at the Borrower's request.
You asked about "cancelled":
You may request cancellation form the servicer whe the appropriate LTV is met.
The appropriate LTV is usually 78%, which is calculated by dividing the present mortgage balance by the present apprasied value of the property.
The servicer of your mortgage will require that you pay for an appraisal to determine the present value of the property.
The PMI may be eligible to be "cancelled" faster than "terminated" if you paid extra on the mortgage so the balance dropped faster in combination with increased value of the property during times/years that property values increased.
You probbably must have paid the PMI two years or longer before you can request cancellation.
Probably no payments late over 30 days in last 12 months and no payments over 60 days late in last 24 months.
Other than that, call the 800 customer service number of the company serving your mortgage loan and ask them.
You asked about "cancelled":
You may request cancellation form the servicer whe the appropriate LTV is met.
The appropriate LTV is usually 78%, which is calculated by dividing the present mortgage balance by the present apprasied value of the property.
The servicer of your mortgage will require that you pay for an appraisal to determine the present value of the property.
The PMI may be eligible to be "cancelled" faster than "terminated" if you paid extra on the mortgage so the balance dropped faster in combination with increased value of the property during times/years that property values increased.
You probbably must have paid the PMI two years or longer before you can request cancellation.
Probably no payments late over 30 days in last 12 months and no payments over 60 days late in last 24 months.
Other than that, call the 800 customer service number of the company serving your mortgage loan and ask them.
As PMI is basically an additional cost to the borrower for the increased risk held by the lender, it is important to track down your payments and request cancellation of the PMI premiums when the loan-to-value ratio hits 80%.
