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About Denise Monaco
Expertise
I can answer questions about home mortgage financing, the difference between a mortgage banker and a mortgage broker, fees involved in purchasing a home and refinancing a home or obtaining a home equity loan and the difference between a 1st & 2nd mortgage and the option to have PMI (Private Mortgage Insurance) Jumbo loans, conforming and non-conforming loans.

Experience
I have been a closer, processor and operations manager and currently a account executive for a national mortgage banking company. I have been in the field for 25 years.

Education/Credentials
Real Estate License & 25 years field experience with many national mortgage banking companies.

Awards and Honors
Top sales person, employee of the month, highest sales award

Past/Present Clients
personal home buyers

You are here: Experts > Shopping > Home Buying/Selling > Real Estate Home Mortgages > PMI Question

Real Estate Home Mortgages - PMI Question

Expert: Denise Monaco - 10/29/2009

Question
It is my understanding that PMI is supposed to be automatically cancelled when you LTV reaches 78%. We are being told by CitiMortgage that they will not cancel our PMI even though our LTV is at about 75%. We paid extra principle payments to reach the lower LTV and CitiMortgage is stating that they are not obligated because we haven’t reached the date that our loan was ‘suppose’ to be at 78% LTV according to our original amortization. My question is, can they do this? Can they really keep making us pay PMI because we chose to pay our principle down early? Is the PMI cancellation really based on an amortization date and not really on your true LTV?

Thanks.

Answer
They are supposed to cancel the PMI automatically when it reaches 78% however with the industry the way it is the guidelines are constantly changing. I would contact them and see what their new procedure is, you may need to provide an appraisal showing that your home has reached that LTV. The reason is that property values are going down and you home may not be worth what it was when you purchased it.

Good luck and let me know if you need anything else.

Denise

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About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here