Sam's Blog

We have many programs that allow the borrower to get out of PMI without having to refinance.  Typically, if you get a 100% LTV loan, it takes around 10 years to pay it down below the 80% but with us, we can allow it to be cancelled as follows!!

Automatic Termination

Loan to Value of 78% based on original value or purchase price whichever is less OR the first date of the month after the date that is the midpoint of the original loan amortization period.

Loan must be current.

No minimum seasoning requirement.

Customer Initiated Removal within First 2 Years

The mortgage balance is first scheduled to reach 80% of the original property value or actually reaches 80% of the original property value

Customer must request cancellation in writing.

No payment 30 days or more past due in the last 12 months; no 60-day lateness in last 24 months.

A Certificate of Value will be obtained by the Lender and paid for by the Customer to confirm that the current value of the property is at least equal to the original property value.

If request for removal is made within the first 6 mos. of closing, the original appraisal may be used.

A new appraisal may be requested if significant home improvements have been made to an owner occupied property which result in a Loan to Value ratio of 75%. 

Market value increases are not acceptable for removal of PMI within the first 2 years

Customer must request cancellation in writing.

No payment 30 days or more past due in the last 12 months; no 60-day lateness in last 24 months.

A new appraisal will be obtained by the Lender and paid for by the Customer to confirm that the increase in value was due to significant home improvements.

Customer Initiated Removal in Year 2 - 5

If request for removal is based on original value of the property, the mortgage balance must have reached 80% of the original property value.

Customer must request cancellation in writing.

No payment 30 days or more past due in the last 12 months; no 60-day lateness in the last 24 months.

A Certificate of Value obtained by the Lender and paid for by the Customer is required.

If the request for removal of PMI is to be based on the current property value the Loan to Value ratio must be 75% or less as evidenced by a new appraisal.

Customer must request cancellation in writing

No payment 30 days or more past due in the last 12 months; no 60-day lateness in the last 24 months.

A new appraisal will be obtained by the Lender and paid for by the Customer to confirm value of the property results in an LTV of 75% or less.

Customer Initiated after 5 Years

If the request for removal of PMI is to be based on the current property value the Loan to Value ratio must be 80% or less as evidenced by a new appraisal

Customer must request cancellation in writing.

No payment 30 days or more past due in the last 12 months; no 60-day lateness in the last 24 months.

A new appraisal will be obtained by the Lender and paid for by the Customer to confirm value of the property results in an LTV of 80% or less.

So, the lesson here is call me so you will know that your clients are getting a loan with a great lender that will not only make their loan processing go smooth and easy, we'll make the whole 30 years go smooth and easy too!