Mortgage insurance is a cost that may be required when you buy a home with a lower down payment. While it helps protect the lender, it does not cover your mortgage payments if you experience financial difficulties.
There are three common types:
The answer depends on the type of loan you have.
You may be able to remove PMI if:
The USDA Annual Fee remains for the life of the loan and cannot be removed without refinancing into a different loan type.
You can find your loan type on your monthly mortgage statement or contact our Customer Service team and we'll be happy to help.
PMI may automatically be removed once your loan reaches a certain point in its repayment schedule, provided your loan is current.
If you've made extra principal payments and reduced your loan balance, you may qualify for PMI removal sooner. We may need to verify your home's value before approving your request.
If home values in your area have increased and you've had your loan for at least two years, you may qualify for early PMI removal. A property valuation may be required.
If you've completed significant improvements that increased your home's value, you may qualify for PMI removal. We may ask for receipts or contractor invoices and require an appraisal.
In some cases, we can verify your home's value at no cost. If a broker price opinion (BPO), or appraisal is required, a fee will apply and those costs are generally non-refundable.
Our team can review your loan and explain your options.
Call Customer Service: 877-350-0350