Timeline for PMI cancellation based on original mortgage amount
Current License: CC BY-SA 3.0
10 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Apr 13, 2018 at 17:20 | comment | added | JTP - Apologise to Monica♦ | The banks and insurance companies own the Congress people who would write the regulations that would force them to kill the PMI when the balance hit 78%. For them, buying a congressman is like when I invest in a thousand shares of stock. | |
| Apr 13, 2018 at 17:07 | comment | added | user1700890 | @JoeTaxpayer What is economic rational to follow original amortization schedule when cancelling at 78%? It seems like law was poorly worded. | |
| S Jul 24, 2014 at 13:10 | history | suggested | Engineer2021 | CC BY-SA 3.0 |
fixed grammar, wordiness
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| Jul 24, 2014 at 12:23 | review | Suggested edits | |||
| S Jul 24, 2014 at 13:10 | |||||
| Mar 8, 2013 at 16:40 | comment | added | BrianH | @JoeTaxpayer Thanks very much for explaining this. It's a bummer for me since it will be a few years before we get to 80% on the original schedule, and I sure won't count on the value of our home skyrocketing anytime soon. It sounds like I am stuck with PMI for a while longer. | |
| Mar 8, 2013 at 16:38 | vote | accept | BrianH | ||
| Mar 8, 2013 at 15:00 | comment | added | JTP - Apologise to Monica♦ | @BrianH - right, 78% LTV based on initial V and natural amortization. This I why I advise, especially for those at 85% LTV who think they can find the cash soon after closing to do it first. You can be 80% a week later but the amortization has it occurring in year 5. If you have initial loan,value and rate, it's easy to tell when you'll get to 80% on the table. | |
| Mar 8, 2013 at 13:43 | comment | added | BrianH | Ahh - that's probably it. I have made a lot of extra payments, I have reached 78% earlier than scheduled. I didn't realize that is what that means. So I will need to look at my original amortization schedule and find out when it is supposed to be at 78%? | |
| Mar 8, 2013 at 10:46 | comment | added | Dilip Sarwate | +1 I think the bank employee is using the standard response when the home owner requests that PMI be dropped before the 78% point is reached or when the 78% point is reached early because of extra payments on the mortgage (the law says that PMI must stop when the 78% point is reached on the amortization schedule and the payments are current, not when the 78% point is actually reached; for early dropping, the bank is allowed to charge a appraisal fee). | |
| Mar 8, 2013 at 4:56 | history | answered | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |