Cancelling Private Mortgage Insurance

When your Loan To Value (LTV) ratio falls under 80%, you are no longer obligated to pay private mortgage insurance. The Homeowner’s Protection Act of 1998 (made effective in 1999) made the process automatic whenever you reach 22% equity based on the original assessed property value (you can request it at 20%), but what about if you think the LTV ratio has fallen because the value of the home has appreciated?

Well, that’s what you have to initiate a dialogue with your lender and figure out how you can get PMI removed. Here is a short anecdote by Scott who has initiated a conversation with CitiMortgage about getting his PMI charges removed from his mortgage.

This entry was posted on Thursday, April 20th, 2006 at 2:56 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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