What is private mortgage insurance (PMI)?
Private mortgage insurance (PMI) is required for loans with down payments of less than 20% of the purchase price. PMI is provided by privately owned companies and protects the lender if you default on your loan.
In some circumstances, federal law gives you the right to cancel your PMI or requires that your PMI automatically terminate. The type of mortgage you have will determine when PMI will cancel. If your loan qualifies, your PMI may automatically terminate on the date the principal balance of your loan is scheduled to reach 78% of the original value of the property.
If you have questions about the termination guidelines for your PMI, give us a call at (763) 595-4010. Cancellation or termination of PMI does not affect your obligation to maintain other types of insurance.