This is the third post in the blog series, “How Does PMI Work?” So far, we’ve covered Part 1 and Part 2.
How Does PMI Work - When Can It Be Cancelled?
You also have the option of requesting that your private mortgage insurance premiums be discontinued when your original down payment, in addition to the principal you have paid off and the equity you have accumulated reaches 20%. One way to help determine this is to use one of the statement your lender gives you when you close on a home - it details the number of months and years it will take you to pay 20 percent of the premium.
Can PMI Be Cancelled for All Types of Loans?
Mortgage insurance for FHA loans remains no matter how much equity you have in your home. The only way to avoid PMI with an FHA loan is to refinance into a conventional loan.
I hope this blog series “How Does PMI Work?” has been helpful as you get ready to buy a home in Northern Virginia. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com and ask me for a list of the top 10 Northern Virginia homes you can buy for no money down in the county or city of your choice!