PMI time frame

Aptiv
makanmalik

Go to company page Aptiv

makanmalik
Mar 24, 2021 3 Comments

Hello All,

Do you have to keep PMI around for a minimum time frame? What are the rules around it?

I am planning on starting with PMI but expecting some investment return in a year that should get me to 20% equity.

Can I just pay a lump sum in say 14 months from closing and call the bank to drop the PMI?

#personalfinance #investments #mortgage

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  • Dell
    Sally-Mayo

    Go to company page Dell

    Sally-Mayo
    If your house appreciates in value to put your loan/value ratio into non PMI zone, you can call your bank, pay for them to do an appraisal, and get out of PMI. - I did this on my home after it’s value shot up in year two of ownership. It’s important that you get an appraisal approved by your bank because they usually won’t accept third party evaluations. That or you pay off enough principle- both methods work, and once you hit the ratio just call your lender.
    Mar 24, 2021 2
    • Aptiv
      makanmalik

      Go to company page Aptiv

      makanmalik
      OP
      Do I have to wait two years? What if I hit the ratio in 6 months?
      Mar 24, 2021
    • Dell
      Sally-Mayo

      Go to company page Dell

      Sally-Mayo
      Whenever you hit the ratio you can get it removed, there is no required timeline. It does take some time to complete the appraisal process, and if it’s a tight window and your appraisal misses the mark, you may need to redo the process again. The appraisal might be $300-$600.
      Mar 24, 2021