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I've asked my home mortgage lender several times to remove the private mortgage insurance (PMI), and they said, "No, it is for the life of the loan." We are down to only $20,000 on our loan and they still refuse to remove it.

What can I do at this point to get the PMI removed?

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  • 4
    What country are you in?
    – Stan H
    Oct 22, 2023 at 5:29
  • What is the current LTV [loan-to-value ratio] on your loan?
    – cellepo
    Oct 22, 2023 at 17:22

1 Answer 1

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[Assuming U.S.]

If you have a conventional/private mortgage, PMI must automatically be removed when your loan-to-value (mortgage principal/home value) is scheduled to reach 78% based on the original purchase price, but you can request it be removed as soon as your LTV reaches 80%. If market values have fallen, the lender can require a reappraisal to ensure the LTV is at or below 80%.

If you have an FHA loan (non-conventional mortgage) and put less than 10% down, mortgage insurance is there for the life of the loan. The FHA calls their mortgage insurance "MIP". You'll need to refinance or pay it off to remove the mortgage insurance.

If you have an FHA loan and put more than 10% down, mortgage insurance stays on your mortgage for 11 years.

VA loans (another type of non-conventional mortgage) don't have mortgage insurance, but have an up-front "funding fee".

USDA loans (also non-conventional) have a "guarantee fee" that is split between an up-front charge and a monthly fee for the life of the mortgage.

Other non-conventional/government-backed loans may have different fee structures.

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