Private Mortgage Insurance (PMI) is extra insurance that a lender requires a borrower to pay if the borrower puts less than 20% of the home’s value in a down payment at loan origination.
Based on the original information in your loan agreement, we’ll project the date when your LTV ratio will hit 78%. And we’ll plan to cancel your PMI on that date.
Note that this projected date for automatic cancellation is fixed and can’t be moved up. However, if you believe your loan qualifies for PMI cancellation before the projected date, you can submit a cancellation request.
You need at least 20% equity in your home to request cancellation, and some other conditions may apply. Here are the main ones:
- Your loan must be current.
- In the last twelve months, you can’t have been more than thirty days late on any payment.
- In the last twenty-four months, you can’t have been more than sixty days late on any payment.
- We may need to order a professional appraisal of your property to verify its current value. The appraisal needs to happen within ninety days of your PMI cancellation request.