Lenders typically require private mortgage insurance when a down payment is less than 20% of the home’s purchase price. The Homeowners Protection Act requires lenders to automatically cancel PMI when the home’s LTV reaches 78%. However, you have a couple options before it reaches that level. Once the value of your home has increased to the point where the LTV is 80% or less, you can:
Contact your loan servicer and ask that the PMI be removed.
Refinance your loan with NOVA, with no closing costs.
With refinancing, in addition to removing the PMI, you may be able to lower your interest rate or get a shorter term, both of which can save you a significant amount of money over the life of your loan. An additional option, if you have the available funds, is to make a single lump sum payment toward your principal to reduce to your LTV to 78% so it is automatically removed.
Contact a NOVA Home Loan Officer for details on which option is best for you.
The Program information shown is for informational/educational purposes only and does not represent a commitment to lend or extend credit. Other terms and conditions may apply. Contact your Loan Officer for more details.
