I have been paying mortgage insurance for over 2 years. Our credit is very good. When can I stop paying this monthly payment?

Value of home approx. $300,000.00, owe approx. $265,000.00.

F. M.
Westminster
Colorado

Answer:

Private Mortgage Insurance is required if the down payment on a purchase is less than 20%. This insurance is provided by a private insurance company and protects the lender should the home owner default on the house payments. When a home owner's loan amount fall below 80% loan to value they may submit a request to their bank to eliminate the Mortgage Insurance.

LTV can be calculated by dividing the loan amount by the current value of the house.

EX. If a home owners value is $300,000.00 and their loan amount is $265,000.00 you would calculate as follows: $265,000.00 / $300,000.00 = 88% LTV
You will need to pay approximately 8% more to eliminate the MI.

If you have any other question please call: 800-473-0863.

Sincerely,

Steven Baker
Branch Manager
Franklin Bank