When does mortgage insurance go away?

Home Forums Mortgage When does mortgage insurance go away?

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    You have to pay mortgage insurance or private mortgage insurance (PMI) if your down payment for a house has been less than 20% of the home value. PMI is recalculated every month based on your current loan balance and reduces every year. So you don’t have to pay PMI throughout your loan term. You can request the removal of your PMI once you’ve reached 78% loan-to-value (LTV) ratio.

    You can either wait till your PMI is automatically termination or get rid of your PMI quicker by:

    • paying off your mortgage early
    • refinancing your mortgage
    • reappraising your home, and
    • expanding or renovating your home to increase its value.
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