When can you cancel mortgage insurance? If you made a down payment of less than 20% when you purchased your home. Your lender likely requires private mortgage insurance. This protects the lender against the law in the event you are unable to make your payments as agreed and the lender has to foreclose.
But how long do you need to pay for mortgage insurance? If you’ve been making monthly mortgage payments on time. You can request that mortgage insurance be cancelled when your mortgage is paid down to 80% of the home’s original value. And if the property value is not declined, your lender is obligated to automatically cancel mortgage insurance once your loan reaches 78% of the original value. Without regard to market conditions, but again, provided that you are current with your payments.
If you believe your home has increased in value, you may also be able to cancel your mortgage insurance based on that increase. In any case, contact your lender in writing to request cancellation. You’ll likely be required to pay for an appraisal to prove the current value of your property. Other than the automatic termination required by law, cancellation always depends on market conditions and your payment history. Contact your lender if you have any questions.
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One of the reasons to call the Agardi Team if you want to buy a home or have one to sell is:
Not only do we sell our clients’ homes for more money and faster than the average area agent, but your home is also more likely to sell. According to 2015 MLS statistics, only 71% of area homes sold during their listing term. Compare that to our 95% of homes listed that sold before the end of the listing term. YOUR HOME SOLD GUARANTEED OR WE’LL BUY IT*
To discuss the sale of your home, call The Agardi Team at 718-755-2882 and start packing!
*Agardi Team and the seller have to agree on the price and the closing date.