Dropping Pmi

Expert, localized Los Angeles answers provided by Heather Roy

Dropping Pmi
	Good day, Edith - In Sept 2002, my domestic partner and I purchased a house.Because we had a limited down payment, we had to get private mortgage insurance.Three years later we are still paying the insurance.How long will we have to?I'm not sure if this impacts things, but the town has reassessed our house for almost twice what we paid.Also our mortgage payment history is excellent.No late payments, etc.

	Your mortgage company won't be interested in town assessment figures.And even if the value of your home has gone up, the required equity for dropping private mortgage insurance is figured from original value or current appraisal (not assessment), whichever is lower. It sounds as if yours is a conventional mortgage, in which case you can request PMI coverage dropped when your equity reaches 20 percent of the original value.It will be taken off automatically when your equity reaches 22 percent.
	Edith Originally published on May 6, 2006

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