• X
  • Facebook
  • Instagram
  • Youtube
  • LinkedIn
  • Mail
Call us now: (914) 965-1011
Yonkers Real Estate Attorney
  • Areas of Practice
    • Real Estate
    • Real Estate Deed Transfer
    • Landlord and Tenant Law
      • Yonkers Evictions and Landlord Tenant Law
    • Business Formation
      • Business Entities
    • Civil Litigation
      • Real Estate Litigation
      • Enforcement of Promissory Notes
      • Breach of Contract
      • Tortious Interference of Contractual Relations
      • Contract Drafting
      • Non-Competition Agreements
      • Construction Agreements
      • Independent Contractor Agreements
      • Construction Litigation
      • Service Contracts
      • Partner and Shareholder Disputes
      • Dissolving Your Company
      • Negligence Defense
      • Other General Civil Litigation
    • Zoning Matters
    • Lender Representation
    • DHCR
    • Wills, Trusts & Estates
      • Wills
      • Advanced Directives
      • Estate Probate
      • Estate Administration
      • Will Contests
      • Estate Litigation
      • Estate Planning
    • Tax Certiorari
    • Attorney Referrals
  • FAQ
  • Reviews
  • Forms
  • Media
    • Videos
    • Downloadable Newsletters
    • Blog
    • Presentations
    • Current Events
    • Community Outreach
  • Helpful Links
    • Yonkers Evictions and Landlord Tenant Law
  • Contact Us
  • The Team
  • Search
  • Menu Menu
You are here: Home1 / News2 / Uncategorized3 / Ways to Stop Paying For Private Mortgage Insurance

Ways to Stop Paying For Private Mortgage Insurance

Uncategorized
Are you wasting money on Private Mortgage Insurance? Private Mortgage Insurance (PMI) protects lenders against loss if a borrower defaults. You are most likely paying for PMI if your mortgage on your home was 80% or more of the purchase price. The cost of PMI is added to your monthly mortgage payment and costs about .25% to 2% of your loan balance per year which can be a significant amount of money. However, you don’t have to pay for PMI forever. The Homeowners Protection Act of 1998, which applies to new mortgages originating on or after July 29th 1999, states three ways PMI can be canceled or terminated. Please note that the following do not apply if you are behind on any mortgage payments:
(1) Borrower Cancellation
You can send a written request to your lender if your mortgage has reached 80% of your home’s current value. This can happen in the following ways.
  (a) Pay the mortgage down to 80% of the original purchase price and your home has not decreased in value.
  (b) There is a sufficient increase in home value. You can cancel PMI if the increase is sufficient to reduce the mortgage to 80% or less of the current value of your home. An increase in value can be the result of home improvements or a natural rise of home prices in your area.
(2) Automatic Termination
Even if you do not request cancellation, your lender must terminate PMI when you pay down the mortgage to 78% of the original purchase price. Here, home value is based solely on the original purchase price. Thus, your lender must terminate PMI even if your home has decreased in value.
(3) Final PMI Termination
Your lender must terminate PMI when you have reached the midpoint in the repayment schedule of your loan. For example, on a typical 30 year loan, if a borrower has paid all mortgage payments through 15 years, the lender must terminate PMI. Please note that if your loan is guaranteed by the Federal Housing Administration or Department of
Veterans Affairs, these rules generally won’t apply. If you have questions about mortgage insurance on an FHA or VA loan, you should contact your servicer.
James G. Dibbini & Associates, P.C. has over 20 years of experience helping homeowners protect their interests and save money. If you need help cancelling PMI, or believe it should be terminated, give us a call at (914) 965-1011 or email us at jdibbini@dibbinilaw.com to learn more.
March 8, 2017
Share this entry
  • Share on Facebook
  • Share on X
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on Reddit
https://www.dibbinilaw.com/wp-content/uploads/2021/03/dibbini_logo-withtagline-300x109.png 0 0 Jim Dibbini https://www.dibbinilaw.com/wp-content/uploads/2021/03/dibbini_logo-withtagline-300x109.png Jim Dibbini2017-03-08 21:17:582021-03-19 23:47:06Ways to Stop Paying For Private Mortgage Insurance

Recent Posts

  • Urge your legislators to reject Good Cause Eviction!
  • How do I collect rent my tenant owes me?
  • What is the first step in removing a tenant?
  • Do I have to honor the old lease the tenant signed with the former owner?
  • What do I do with a tenant that is always late with their rent?

Any more questions?

"*" indicates required fields

Name*


Download Our
Newsletter Here

Subscribe to Jim’s Newsletter




570 Yonkers Ave | Yonkers, New York 10704
Direct access from street level. ADA Accessible bathrooms on premises.
Tel: (914) 965-1011 | Fax: (914) 965-0019 | e-mail: jdibbini@dibbinilaw.com

Now Serving These Locations:
Yonkers | Bronx

GET DIRECTIONS

© James G. Dibbini & Associates, P.C.

This web site is designed to provide general information only and to help in the choice of appropriate legal counsel. The information contained herein should not be construed as legal advice. Legal jurisdictions differ on major and minor aspects of the law and each legal situation is unique; requiring that all legal situations be addressed with qualified legal counsel. Prior results do not guarantee a similar outcome. Submitting or receiving information or questions through this web site does not create an attorney client relationship. No attorney client relationship will exist unless you meet with one of our attorneys and sign a retainer agreement. Please do not submit any information that is case specific, personal or confidential. If you have legal problem or issue you should always consult with a qualified lawyer experienced in the appropriate area of law. We would be glad to discuss your specific situation with you, should you so desire, by phone at (914) 965-1011.

Disclaimer | Site Map | Contact Us | Privacy Policy

What Multi-Unit Property Owners Should Know About the DHCRFiling Mandatory Income and Expense Statements
Scroll to top

We use cookies to provide and improve our services. By using our site, you consent to cookies.

OKLearn More×

Cookie and Privacy Settings



How we use cookies

We may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.

Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.

Essential Website Cookies

These cookies are strictly necessary to provide you with services available through our website and to use some of its features.

Because these cookies are strictly necessary to deliver the website, refusing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.

We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.

We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.

Google Analytics Cookies

These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.

If you do not want that we track your visit to our site you can disable tracking in your browser here:

Other external services

We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.

Google Webfont Settings:

Google Map Settings:

Google reCaptcha Settings:

Vimeo and Youtube video embeds:

Other cookies

The following cookies are also needed - You can choose if you want to allow them:

Accept settingsHide notification only