@neveroptedin You might be paying a mortgage charge you already have the right to cancel. Is it still on your statement? #pmi #mortgage #mortgageinsuran... See more
The claim
Under the Homeowners Protection Act of 1998 (12 U.S.C. § 4902), for single-family principal-residence mortgages closed on or after July 29, 1999, a borrower who submits a written request and is current with a good payment history can have PMI canceled on the date the principal balance is scheduled to fall to 80 percent of the home's original value, and the servicer must in general automatically terminate PMI on the date the principal balance is scheduled to reach 78 percent of that original value.
The receipt
You have the right to ask your servicer to cancel PMI on the date the principal balance of your mortgage is scheduled to fall to 80 percent of the original value of your home.
Yes. Even if you don't ask your servicer to cancel PMI, in general, your servicer must automatically terminate PMI on the date when your principal balance is scheduled to reach 78 percent of the original value of your home.
The information below describes the legal requirements that apply to mortgages for single-family principal residences that closed on or after July 29, 1999.
A requirement for private mortgage insurance in connection with a residential mortgage transaction shall be canceled on the cancellation date or any later date that the mortgagor fulfills all of the requirements under paragraphs (1) through (4), if the mortgagor— (1) submits a request in writing to the servicer that cancellation be initiated;
What you can do
The 80% request has to be in writing — and the statute attaches conditions to it: a good payment history, no junior liens, and evidence the home's value hasn't declined. Ask your servicer which of those they currently have on file for you, and what they consider your home's "original value."
FHA and VA loans work differently and are not covered by this right.
Consumer info, not financial advice.