We are asked how to drop the Mortgage Insurance on your loan. Mortgage Insurance also known as MI or PMI (Private Mortgage Insurance) is part of your monthly mortgage payment. Mortgage Insurance is required when putting less than 20% down payment on a home. It can be costly and will add $100 plus to your loan payment (depends on loan amount). Mortgage Insurance is to protect the lender in case you default on your home loan.
Below are explanations on how to or when MI will be removed from your monthly mortgage payment.
Dropping Conventional Mortgage Insurance Rules
- Automatic Termination
- Fixed Rate & Adjustable - Removed when reduced to
- LTV based upon ORIGINAL VALUE
- Based SOLEY on regular amortization (not prepayment
- Fixed Rate & Adjustable - Removed when reduced to 78% LTV