PMI Private Mortgage Insurance - How to remove it from your mortgage

Buyers with down payments of less than 10% are required to get mortgage insurance. These loans are risky 
as evidenced with the "sub-prime" mortgage crisis.

The amount of the insurance is often $40 to $50 per month for a $100,000 home.  This payment is typically added to the overall payment

Homeowners continue to pay the PMI even after their loan balance has dropped below the original 80 percent threshold, which occurs as the equity in the home increases.

Previously, lenders were under no obligation to inform borrowers when they had reached a point where the PMI could be removed. In 1999, when the Homeowners Protection Act took effect and this law now obligates lenders to terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. 

The law stipulates that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent!  This law only applies to home loans - whether first time or refinances - that closed after July, 1999. Also certain other conditions must be met, such as being current on the loan payments. Buyers that purchased before July 1999 can also have their PMI removed.

The question is when does the equity exceed the 20 percent point? A state certified appraiser can provide an accurate appraisal to determine this.  

Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year

Private Mortgage Insurance (PMI): Law Requires Lenders to Cancel PMI

Got a Question?

Do you have a question relating to real estate appraisals? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Information
Question
NASA PHOTO OF THE DAY:
 
The First Space Shuttle
4/14/2024 2:06 AM
The new era in space flight began on April 12, 1981. That is when the first Space Shuttle mission (STS-1) was launched. The Marshall Space Flight Center developed the propulsion system for the Space Shuttle. This photograph depicts the launch of the Space Shuttle Orbiter Columbia crewed with two astronauts, John Young and Robert Crippen...Read More
 
Seeing Totality
4/14/2024 2:06 AM
A total solar eclipse is seen in Dallas, Texas on Monday, April 8, 2024. A total solar eclipse swept across a narrow portion of the North American continent from Mexico’s Pacific coast to the Atlantic coast of Newfoundland, Canada. A partial solar eclipse was visible across the entire North American continent along with parts of Central America and...Read More
 
Astronauts Protect Their Eyes with Eclipse Glasses
4/14/2024 2:06 AM
NASA astronauts Stephen Bowen, left, Frank Rubio, Warren Hoburg, and UAE (United Arab Emirates) astronaut Sultan Alneyadi, right, pose for a photo wearing solar glasses, Tuesday, March 19, 2024, at the Mary W. Jackson NASA Headquarters building in Washington. Bowen, Hoburg, and Alneyadi spent 186 days aboard the International Space Station as part ...Read More
 
Exobiology Deputy Branch Chief Melissa Kirven-Brooks
4/14/2024 2:06 AM
“… I've just seen such tremendous things happen since I've been part of the Astrobiology Program, and that's why I'm pretty confident we're going to find life elsewhere, because there are just so many brilliant people working on this.” — Melissa Kirven-Brooks, Exobiology Deputy Branch Chief and Future Workforce Lead of the NASA Astrobiology Program...Read More
 
Carving a Path
4/14/2024 2:06 AM
What looks like highways going through a metropolitan area are actually a series of glaciers carving their way through the Karakoram mountain range north of the Himalayas. This photograph was taken from the International Space Station as it orbited 263 miles above...Read More
 
A Home for Astronauts around the Moon
4/14/2024 2:06 AM
The primary structure of the Gateway space station's HALO (Habitation and Logistics Outpost) module is one step closer to launch following welding completion in Turin, Italy. HALO is one of four Gateway modules where astronauts will live, conduct science, and prepare for lunar surface missions. NASA is partnering with Northrop Grumman and their sub...Read More
 
Safety First!
4/14/2024 2:06 AM
Safety is important, no matter where you're viewing the eclipse. NASA astronauts aboard the International Space Station show off their eclipse glasses, which allow safe viewing of the Sun during a solar eclipse...Read More
 
International Space Station Program Deputy Chief Scientist Meghan Everett
4/14/2024 2:06 AM
“One of my cornerstone pinnacles [is], ‘Show up to work [and] life with integrity and intent.’ So, accomplish your goals with integrity, intent, and a mission. Stick to that and have the confidence to do that, and be OK with messing up and failing, and have fun with those things." — Meghan Everett, International Space Station Program Deputy Chief S...Read More
 
Mariner 7 Goes to Mars
4/14/2024 2:06 AM
An Atlas-Centaur launched at 5:22 p.m. EST on March 27, 1969, to send Mariner 7 on its way to Mars. Mariner 7 joined its sister spacecraft, Mariner 6, on a journey that carried them within 2,000 miles of the red planet that summer. Mariner 6 was launched from Kennedy Space Center in Florida on Feb. 24 and investigated the Martian equatorial area wh...Read More
 
Sending “Water” to Europa
4/14/2024 2:06 AM
NASA's Europa Clipper spacecraft will carry a special message when it launches in October 2024 and heads toward Jupiter's moon Europa. The moon shows strong evidence of an ocean under its icy crust, with more than twice the amount of water of all of Earth's oceans combined. A triangular metal plate, seen here, will honor that connection to Earth. ...Read More