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How do i get out of my PMI early so I can purchase a 2nd home?

by sarah.diane748 from Ault, Colorado. Sep 24th 2015 Reply


Kay Cleland (kay@kcmortgagecolorado.com)
#31 ranked lender in Colorado - 225 contributions

Contact the servicer as they have to allow the PMI to be taken off the loan. Generally it is 12 months payment history perfect and a new appraisal.

Sep 24th 2015
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

In order to remove MI, you need to pay a minimum of 24 months (MI companies guidelines not loan guidelines), and you must have 20% or more in equity, supported by an appraisal that you pay for.. but unless you have a debt to income problem, you don't necessarily need to have PMI removed on one home to purchase another.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Sep 24th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 1,035 contributions

You need to have 20% equity when you look at the current balance on your loan and value of the property (or purchase price if the loan you have was from a purchase). IT will fall off typically when you get to 78% automatically. But you should have a disclosure that shows you when your MIP will fall off. You could also look at refinancing that loan if you have the value needed to have 20% equity. I am a mortgage broker here in Colorado and rates are still very low. I do know that Colorado values have increased more than most of the other states in the country. Please feel free to give me a call at 303-955-5606 and I would be happy to evaluate your situation.

Sep 25th 2015
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Jesse Stroup (jessestroup)
#4 ranked lender in Idaho - 593 contributions

Well that depends on the type of loan and the guild lines of the loan program when you closed the loan. If you have a conventional loan the PMI will fall off once you pay down the loan to a set Loan to Value ratio (LTV). If its and FHA loan it 5 years or 78% LTV, you will need to call the mortgage holder to get more information.

Sep 25th 2015
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Sara Deere (Mortgagequeen2)
#1 ranked lender in Missouri - 576 contributions

You don't have to eliminate PMI to purchase a second home. What has been said in regards to conventional loans is correct in that at 78% LTV the PMI can possibly be removed. FHA depending on when you closed the loan, you could be going with the old rules. If you had an FHA loan closed recently, the new rules state on a 30 year mortgage 11 years PMI is in place unless you pay the loan off earlier. Also one is allowed to have only one FHA loan at a time.

Sep 25th 2015
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,970 contributions

Not sure how eliminating PMI on an existing loan and purchasing a second home have anything to do with each other.

Sep 26th 2015
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