Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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@davescharf wrote:

@HockeyBum wrote:

@mjarz02 wrote:

We mentioned to our mortgage guy that if we put down 20%, would that remove mortgage insurance and he said “no, you pay mortgage insurance until 80% of the home is paid off”. Well when the vast majority of your payment is going towards the interest, that 80% is a longtime.

@davescharf wrote:

That 80% is blatantly false

davescharf is correct. PMI is supposed to drop off at 20%, not 80%. Our PMI should be dropping off in the next month or two, as we’re getting really close to that 20% mark. What I don’t understand is that I thought you had to have 20% equity to have the payment dropped. With the appreciation in home values in my area over the last few years, we should have passed the 20% equity mark a long time ago. We’ve called the bank several times asking to have the PMI dropped, but they have refused. They won’t do it until 20% of the loan balance has been paid. :confused2:

It’s supposed to be 80% loan to value. They will use their amortization chart to calculate this rate unless you agree to pay for an appraisal to show it should be different.

Our new mortgage servicer told us once it goes below that 80% it will continue for 6 more months unless I specifically call and end to terminate it before then. We only pay like $30 or $40 a month in it and this is e first time we’ve ever had PMI but it was worth taking it on with our last refinance because we dropped 3 years off our term and still pay less than before the refi

This is correct. Bank calculates when you have paid 20% of the loan plus 6 months. You can request an appraisal to end the PMI early if you believe your property has apprieviates enough. If your bank refuses (it won’t) you always have the option to refi which will come with an appraisal. If your under 80% LTV you won’t pay PMI.