Comments on: USDA Home Loans have PMI?

By: Eleanor

Eleanor — Mon, 14 May 2012 16:03:22 +0000

Linda – I just noticed you were asking about when you could get the PMI (that you pay monthly) on a USDA Home Loan taken off. That is charged for the life of the loan. It adjusts Annually. So year one (as an example) your balance is $100K. You take the $100,000 mulitply by .3% then divide by 12 – that’s what you are charged monthly. The next year, you’ve made payments, and you might only owe $97K – that’s the number that the .3% is based upon

By: Eleanor

Eleanor — Mon, 14 May 2012 15:53:57 +0000

Per FHA’s Mortgagee letter of 2000-38, Mortgages Endorsed after January 1, 2001 can have their annual insurance premium (that FHA PMI you are paying each month) dropped off. FHA does NOT make the call – the Bank you are making your payments to decide – however, the exact “guidance” from FHA says: “Cancellation of the annual mortgage insurance premium after the loan amount is reduced to 78% or less of the property value (based on the lower of the sales price or appraised value at origination)” This is pretty significant. It’s saying that you don’t have to reach 78% of TODAY’s Value – only 78% of the ORIGINAL appraised value or Sales Price! Good Luck!

By: linda pruitt

linda pruitt — Sat, 12 May 2012 21:33:24 +0000

when can i get out of paying the pmi insurance.

By: Nicole Ellis

Nicole Ellis — Wed, 12 May 2010 01:52:39 +0000

After the Typhoon Katrina incident, we always make sure that our home is always insured that is why we always get premium home insurance. `,`