How to Stop Paying Private Mortgage Insurance on a Home Loan

You can easily stop paying private mortgage insurance on your home loan with the steps provided in this article. It is a requirement that a person pays PMI on a home loan if he has paid less than 20% down payment. The stoppage of payment is all a matter of speaking out for yourself as a lender. Some people have ignorantly paid an extra amount of mortgage all through their mortgage payment period and lost a lot of money in the long run. You can save $100 every month on a home loan if you get rid of this payment.

PMI has been designed to protect the lender and you can stop paying it as soon as you have made 20% payment of the value of the home. In other words you need to trace your payment until such a time as you have already paid off the 20% value of the home. The remainder that needs to be paid should be less than 80% for you to justify the removal of PMI from your monthly payments. You need to make payments in time and cooperatively to be justified when asking for the removal of PMI. Ask your lender for an amortization schedule that will show how you will pay the loan until such a time as you have attained 20% equity.

You have the right to stop paying PMI as soon as the value of the payment you made is more than 20% of the value of the home, so it’s not a matter of pleading with the company to do you a favor. This is a matter of a right that you as a buyer possess and you need to exercise before anything happens. You will have a hard time asking for this if you have not been paying on time.

You can take another loan on your property to fill the gap on the remainder of your loan. If your down payment did not reach 20%, the mortgage loan may take care of the deficit and this will ensure that you do not have to pay PMI.

Your lender should be contacted in writing with all the requests (of removing PMI and getting an appraisal of your property). You need to keep all the reference numbers of your loans or other correspondences you have had with your lender to ensure you get what you want in time.

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