PA Mortgage Network PMI

TIP: Don't make any adverse changes to your financial "picture" during this time between approval and closing. Innocent mistakes range from applying for a new department store credit card, to purchasing a refrigerator for the new house, to buying a new car, to quitting a job to go full-time into a new business. When you supply us information to help verify your income, employment, assets and credit history, we will obtain a credit report directly from the credit bureau.

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For people interested in buying a home, refinancing a mortgage or applying for a home equity loan or line of credit in Pennsylvania. Great rates with superior service.

<< Frequently Asked Questions (FAQ)

What is PMI? Can I get rid of the PMI on my loan?

PMI or Private Mortgage Insurance is typically required when you buy a house with less than 20% down. Mortgage insurance is a type of guarantee that helps protect lenders against the costs of foreclosure. This insurance protection is provided by private mortgage insurance companies. It enables lenders to accept lower down payments than they would normally accept. In effect, mortgage insurance provides what the equity of a higher down payment would provide to cover a lender's losses in the unfortunate event of foreclosure. Therefore, without mortgage insurance, you might not be able to buy a home without a 20% down payment.

Canceling private insurance coverage does not depend totally on the degree of your equity in the home. The final decision on terminating a private mortgage insurance policy is for the lender and any investor who may have purchased an interest in the mortgage. Typically, the lender will permit cancellation of mortgage insurance when the loan is paid down to 80% of the original property value. Some lenders may require that you pay PMI for one or two years before you may apply to remove it.

To cancel the PMI on your loan, contact your lender. An appraisal may be required to determine the value of your property. In addition, you may be required to pay for the cost of this appraisal. Or, you can of cancel the PMI on your loan if you refinance and get a new loan without PMI.