Can you say Bye to MI?

For homebuyers, Mortgage Insurance (MI) is like going to the dentist office, necessary but no fun.

So how fast can homeowners drop MI? With home prices on the rise again, it is a great time to reference how and when MI can be removed from and realize a lower monthly mortgage payment.

Typically there is a two year seasoning, mortgage payments must be current for the last 12 month period AND;

• 78% loan to value (LTV) by principle reduction of original value – minimum 2 years of payments 

           OR

• 80% loan to value based on the current loan amount divided by the current value – minimum 2 years of payments

It is important to emphasize that waiving MI is always to be coordinated with the servicer of the loan. Each servicer will have specific instructions on how to have the MI removed.

For reference visit www.mgic.com/hpa specifically page 6 and 8 for more details and specifics.

Taking the time to research if you or someone you know can say goodbye to MI, could lead to a significant monthly savings that no one would want to pass up.