Jen Sopinski joined me recently to talk about mortgage insurance and how you can get rid of it. According to her, there are a few different ways to go about it.

I was recently joined by my friend Jen Sopinksi from National MI to answer a few questions about how homeowners can get rid of private mortgage insurance.

There are two different ways to cancel. Mortgage insurance will automatically cancel at 78% loan-to-value. Your borrower can also request a cancellation at 80% loan-to-value. Both of these numbers are based on the original value of the home when you bought it.

If the property has appreciated since you’ve bought it, you can also have mortgage insurance dropped based on its current value. The loan needs to have been serviced for at least two years and then you can request a drop in mortgage insurance at 78% loan to value. If it’s more than five years, you can request at 80% loan to value. It’s always wise to accomplish this through whoever is servicing the loan.

“Mortgage insurance will automatically cancel at 78% loan-to-value.”

There’s also a third way that you can drop your mortgage insurance. With our clients who are paying mortgage insurance, we will track the market and once we know they have enough equity to drop the mortgage insurance, we can help them refinance into a loan that doesn’t have mortgage insurance. It helps us stay in touch and save our clients some money in the process.

If you have any questions for Jen about mortgage insurance, you can reach out to her at (510) 788-8618 or send her an email to Jen.Sopinksi@nationalami.com.

If you have any other questions for us, don’t hesitate to give us a call or send us an email anytime. We look forward to hearing from you soon.