How to get rid of your Mortgage Insurance (pmi)

Breaking up is hard to do…unless it can save you money ! That’s why the first question most buyers ask about their new mortgage is—“When can I drop my MI?” Well, I’ve created a summary below to help you understand Fannie Mae’s guidelines on automatic and borrower-initiated termination of MI so that your borrowers will know when they can say goodbye to their MI!

Automatic Termination of a one-unit principle residence or second home:

• a mortgage loan is eligible for automatic termination of Ml based on the scheduled termination date (or the mid-point of the amortization period, as applicable), and the loan value is 78% of the original appraised value, and

• the borrower's payments are current

Borrower initiated based on the original value of the property on a one-unit principle residence or second home:

• borrower must make a written request to the servicer (termination will not happen automatically)

• loan value must be 80% of the ORIGINAL VALUE

• the borrower’s payments are current

Borrower initiated termination on a one-unit principle residence or second home:

• borrower must make a written request to the servicer (termination will not happen automatically)

• Loan to value is 75% or less of ORIGINAL VALUE if the owner has owned the property for 2-5 years

• the borrower’s payments are current

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