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     Kalikaalam Kurra Bewarse Username: Kalikaalam Post Number: 2553 Registered: 04-2015 Posted From: 68.93.142.53 Rating: N/A |
I think this is what exactly he told over phone- One-Unit Primary Residence or Vacation Home If the residence is your single-family primary home or second home, your mortgage insurance will be canceled automatically in either of the following scenarios, whichever happens first: The LTV reaches 78% (and you didn’t make extra payments to get it there) You reach the midpoint of your mortgage term (15 years on a 30-year mortgage, for example) To give these numbers some context, if you had a 10% down payment at an interest rate of 4.0%, you’ll reach 78% LTV after 81 months. The same scenario with a 5% down payment would take 104 months. The auto cancellation occurs as long as you’re current on your payments. If you don’t want to wait for it to auto cancel, you have some options. If your LTV reaches 80% through payments, you can request cancellation. Fannie Mae and Freddie Mac both allow you to make extra payments on the balance in order to get down to 80% faster. If you’ve made home improvements to increase your equity by increasing your property value, Fannie Mae requires that you have 75% or less LTV before they will take off mortgage insurance. Freddie Mac leaves the requirement at 80%. All improvements have to be called out specifically in a new appraisal. If you’re requesting removal of your PMI based on natural increases in your property value between two and five years after your loan closes, both Fannie Mae and Freddie Mac require a new appraisal, and the LTV has to be 75% or less. If your removal request comes more than five years after your closing, the LTV can be 80% or less with a new appraisal. These requirements apply to insurance removal based on market value increases not related to home improvements. Read more at https://www.quickenloans.com/blog/mortgage-insurance-when-you-can-get-rid-of-it# zRpq4RmFkToQYuYt.99 "The first principle is that you must not fool yourself and you are the easiest person to fool.” —Richard Feynman |