Some lenders and servicers may also allow for earlier removal of PMI under their own standards. You have the right to request that your servicer cancel PMI when you have reached the date when the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home. This date should have been given to you in writing on a PMI disclosure form when you received your mortgage. If you can't find the disclosure form, contact your servicer. You can ask to cancel PMI earlier if you have made additional payments that reduce the principal balance of your mortgage to 80 percent of the original value of your home.
For your PMI to be cancelled on that date, you need to be current on your payments on the anticipated termination date. Otherwise, PMI will not be terminated until shortly after your payments are brought up to date.
There is one other way you can stop paying for PMI. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site.
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The information on this site does not modify any insurance policy terms in any way. Unlike conventional loans, FHA loans come with mandatory mortgage insurance regardless of the amount of your down payment, and cancelling it can be challenging, and in some cases, impossible. FHA mortgage insurance protects against the risk that you default, or stop making payments, on your FHA loan.
You already paid one portion of the MIP when you closed on your home — that was your upfront insurance. The upfront MIP equals 1. Annual MIP rates depend on three key factors:. Borrowers with a conventional loan who made a down payment of less than 20 percent typically have to pay private mortgage insurance PMI premiums , which currently range from 0.
Once you accrue 22 percent equity in your home, your lender automatically stops charging for the insurance. The first place to look is your loan origination date :. Call the number on your monthly mortgage statement, long before you need it, she says. You can save money by acting to remove PMI sooner.
A good payment history. The rule is no payments 30 days late in the past 12 months and no day late payments in the previous 24 months. Timely payments count when it comes to getting rid of PMI. Late payments can put you in a high-risk category, making it harder to cancel. No other liens.
Proof of value. Certain lenders accept a broker price opinion instead. Some lenders require borrowers to use certain appraisers. Click here to check today's VA rates. Check today's rates and start your MIP-eliminating refinance here.
Click here to check rates and lock in your refinance. Click here to get started. Tim Lucas Editor. He has appeared on Time. Connect with Tim on Twitter. Choose Your State:. Choose Your State
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