Finance Quick Answers
How do I get rid of my Private Mortgage Insurance (PMI)?
Homeowners, you may have one less bill to pay relating to your home. Getting rid of Private Mortgage Insurance (PMI) expense should be easier. One million homeowners now pay from $200 to $600 each year in unnecessary PMI premiums.
Congressional legislation went into effect July 1,
1999 requiring automatic termination of PMI when the
homeowners has paid at least 20% of the home’s value for
loans made after July 29, 1999. High risk borrowers
(with poor credit) may have to make PMI payments until
they reach 50% equity.
To remove PMI now: you may have to pay $150 to $400 for a new appraisal to prove your case. Contact your lender for details on how to take advantage of this Mortgage Cost Break.
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Monday, July 28, 2008