Apr. 6, 2007
Do I have to carry mortgage insurance on my home after living there 20 years, and how can I get it removed?
Gary, Alabama
Dear Gary,
Lenders require that homeowners purchase private mortgage insurance (PMI) if their down payment on a home is less than 20 percent. PMI is a special policy that covers the lender in case you default on your home mortgage.
When you reach 20 percent equity in your home, you can go to your bank and request PMI be canceled. To keep you up-to-date with your status, your bank is supposed to notify you on a yearly basis on where you stand with your PMI.
Back to the Forum
Disclaimer: We are journalists, not financial planners or insurance brokers. Nothing we say should be interpreted as a recommendation to buy or sell any insurance product, or to provide other financial or legal advice. |
British Citizens:
Canadian Citizens:
