tag:blogger.com,1999:blog-9202349813437886946.post1722738291142242456..comments2023-06-25T02:45:10.891-07:00Comments on Wide Open Wallet: PMI updateMomhttp://www.blogger.com/profile/18326157395652878782noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-9202349813437886946.post-46393911973597634952008-03-11T21:16:00.000-07:002008-03-11T21:16:00.000-07:00Hi, I work at a small community bank and we will c...Hi, I work at a small community bank and we will cancel PMI insurance once a person has fallen below 80%. We just require a letter in writing requesting it be cancelled. Otherwise we have to cancel it, at I believe 78% by law. At loan origination, requiring PMI is based on the lower of the purchase price or appraisal value and if the LTV is below 80% - No PMI. I don't exactly know the specific laws, but since PMI is to protect the bank, it probably depends on your banks specific policy on how they handle cancelations between 80 and 78%. Some are probably more lenient while others must use it as a way to generate some fee income.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9202349813437886946.post-26789892356544389442008-03-10T18:57:00.000-07:002008-03-10T18:57:00.000-07:00What happens if you refi with 78% equity... do you...What happens if you refi with 78% equity... do you avoid PMI altogether at that point?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-9202349813437886946.post-64496828891297938582008-03-05T14:41:00.000-07:002008-03-05T14:41:00.000-07:00We can't wait to drop PM off of our mortgage eithe...We can't wait to drop PM off of our mortgage either. Hopefully, it will be gone in another year!!<BR/><BR/>Good luck!Benhttps://www.blogger.com/profile/11744753986135785323noreply@blogger.com