Forgotten Your Password?

Need to Register?

Question Icon

How do I know when my PMI payments will drop off?

by villanueva_s99531 from Sprague, Washington. Jun 1st 2016 Reply


Lorne Harvey (lorneharvey)
#1 ranked lender in Washington - 418 contributions

They should automatically cancel when your loan balance reaches 78% of it's original balance. You can call your servicer to inquire

Jun 1st 2016
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

It depends on the loan product you have.. For FHA, if your loan was originated prior to June 3rd, 2013, and you did a 30 year loan, then once you hit 5 years and you are at 78% of the original sales price/appraised value, then it should drop off automatically (loan must be in good standing). However FHA changes the rules and as of today, most all FHA loans will have MI for the life of the loan.. the only way to remove it is to refinance.. the same goes for USDA loans.. it's there for the life of the loan. For conventional, it's based on the original schedule of when you hit 78% of your original sales price/appraised value, it's supposed to drop off.. or the month following the mid point of your original term.. Again, the loan must be in good standing.. However, with conventional, once you hit 20% equity, you can always refinance to remove PMI.. Or, once you hit 20% equity, AND you have paid on the loan for 3 or more years, you can contact your lender and ask for the MI to be removed.. so long as the value is there (supported by an appraisal you pay for), then they will drop it and you wont have to refinance to do it.. 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

Jun 1st 2016
1
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,454 contributions

All depends on what type of loan you have and when you got it. A standard conventional will drop automatically once you reach 78% of the original purchase price. An older FHA loan will also drop off at 78% if it has also been at least 5-years. Newer FHA loans will either be for the life of the loan, or at least 11-years, depending on down payment size. USDA loans are for the life of the loan.

Jun 2nd 2016
0
0
Subscribe to our news feed.