PMI stands for Private Mortgage Insurance, and it is required on mortgages with a loan-to-value ratio greater than 80%. For example, if your home was worth $100k at the time of closing, and you owe more than $80k on the loan, you are required to have PMI.
I got my annual PMI disclosure tonight, and it says that if I’ve had my loan for at least two years, and have a good payment history for at least two years, I am eligible to cancel my PMI.
It’s not a lot, mind you. But I’d love to save the ~$70/mo it costs. That’s a fifth of vodka and a bag of CBD gummies, every month.
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A large part of your consideration to let you drop it will be how close you are to paying off 20% of the loan’s value. If you’re over 15% and with that history, you’ll have a better chance.
Yes, because presumably you’ve shifted that balance of loan to value significantly enough that you’re much less of a risk. You have. A lot more skin in the game after 2 years.
the first like 10 years of payments is mostly against the amortized interest, so in the first 2 years the principal owed barely moves down.
I called one day to see how close I was to being able to remove PMI and the rep said “eh, you’re close enough… I removed it, you’ll see your updated amount on your next payment”.
I was surprised how easy it was.
