Comments on: Get Rid of Mortgage Insurance http://www.lastbamboo.org/get-rid-of-mortgage-insurance Mon, 03 Aug 2009 09:25:10 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Codynova http://www.lastbamboo.org/get-rid-of-mortgage-insurance/comment-page-1#comment-15 Codynova Mon, 29 Jun 2009 09:31:51 +0000 http://lastbamboo.org/get-rid-of-mortgage-insurance#comment-15 You can get rid of mortgage insurance a couple of different ways depending upon how long you have owned the home. If you have lived in it a year or more, you can have it reappraised and if what you owe is 80% or less of the value of the home you can request that the lender drop it. Beaware however that they don't have to technically until you pay it down to 78% LTV but most will. If you had a reason to refinance or pull cash out for some reason, you could also do a 2nd mortgage and as part of that transaction pull cash out to pay down the first mortgage to 78% LTV and then have a 2nd lien for what you need plus the other 7% to pay the loan down. Either way, the lender gets to make the decision on whether or not they will let you drop the PMI. Start by calling them first. Another benefit of getting 80%ltv or less is that you do not have to escrow for taxes and insurance anymore and can handle it yourself. Depending upon where you live, that could be a lot of money. You can get rid of mortgage insurance a couple of different ways depending upon how long you have owned the home. If you have lived in it a year or more, you can have it reappraised and if what you owe is 80% or less of the value of the home you can request that the lender drop it. Beaware however that they don't have to technically until you pay it down to 78% LTV but most will.

If you had a reason to refinance or pull cash out for some reason, you could also do a 2nd mortgage and as part of that transaction pull cash out to pay down the first mortgage to 78% LTV and then have a 2nd lien for what you need plus the other 7% to pay the loan down.

Either way, the lender gets to make the decision on whether or not they will let you drop the PMI. Start by calling them first. Another benefit of getting 80%ltv or less is that you do not have to escrow for taxes and insurance anymore and can handle it yourself. Depending upon where you live, that could be a lot of money.

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