There is an specific term for me to cancel a PMI payment after the closing? Let say that I bought this property 6 months ago and today the value have reach to justify a 22% equity, I am eligible to request PMI cancellation ?
Angel, there is generally no "minimum" term you must pay PMI before it can be cancelled, as long as you have enough equity in the property. To know for sure, you should call your lender to ask about terms and conditions, and how to request cancellation if you qualify.
Yes i understand
Very informative and helped me understand home buying! Thank you
Very informative
By what standard does the lender use as “value”? My construction loan was just north of 80%, now that I’ve made sufficient payments to get under that percentages, my lender is telling me that my value was set by my construction cost, even though I paid for an appraisal and it far exceeds this value?? Any insight?
Bryan, lenders have their own guidelines for considering MI cancellation based on the current value of the home (as established by an appraisal as you have done), versus the original value established when you took out the loan. You may want to ask for clarification to find out exactly what mortgage balance level you need to reach to cancel MI.
