AL and FL Mortgage News

How long do I have to keep PMI on a conventional 30YR purchase loan?

3% original down payment = 111 months*
5% original down payment = 103 months*
10% original down payment = 80 months*

*Regardless of your credit and note rate, PMI will be removed automatically from the balanced owed reaches 78% of the original appraised value at the time of purchase.

*While most PMI companies will allow you to request it be removed within 24-36 months subject to an appraisal you request through your loan servicer, if you don’t make a single extra payment or contribute to the principal this answer stays the same based on regular amortization on a 30 YEAR loan.

This is important for shopping for a loan compared to the same scenario for FHA.

3% original down payment = 360 months
5% original down payment = 360 months
10% original down payment = 360 months

Posted by Devin Murray on January 26th, 2016 2:10 PM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog:


English French German Portuguese Spanish