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Premium Mortgage Insurance

777 views 2 replies 3 participants last post by  milach 
#1 ·
I'm sending in the check this month to finally be able to cancel this:D so my question is: How do I actually go about cancelling it?

Do I just call up the mortgage company, write them a letter or ?

I have heard that you have to get an apprasial of your property in order to cancel this insurance, is that correct?

If I do have to get an apprasial, how do I go about doing that?
Who do I call? Whats the average amount for this?

How long does it take to cancel this insurance?


Thanks for the help



Debbie
 
#2 ·
Debbie, Congrats on making it down to 80% on your mortgage!! I would think that if you call your mortgage company, they would be able to help you. Yes, I have heard you have to have an appraisal to get it done, but the $300 (here in SC) for the appraisal would be paid for in a few months of PMI, wouldn't it?

When you find out, let us know as I hope to be there soon and want to know what to do.
 
#3 ·
The way I understand it is once the balance of your mortgage reaches 80% of the original loan amount, you need to submit a letter to your bank (mortgage co. or whatever)to have it cancelled. If you do not cancel it once you reach 80%, the bank is required to cancel it at I think 78%. As far as I know, you don't need an appraisal for that (the numbers should tell you if you have 20% equity).

When we closed on our loan a year ago, the closing officer told us that another way we can get PMI cancelled is say the price of houses in our area skyrockets- she told us to call a realtor to find out the market value on our house, compared to our loan amount. If we have the 20% equity, call the bank, then they will do an appraisal. If you don't have the 20%- then there's no money lost.

But your best bet is to call your bank's loan dept- or mortgage company and find out what they require for you to cancel it. They probably all do things a little differently.

Congrats on being able to cancel it!! That's a huge savings each month!!

Laura
 
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