Can YOU ditch private mortgage insurance and save money !!!!!

If you paid less than 20% down payment when you bought your house and used a conventional loan, the lender probably required you to purchase Mortgage Insurnacne (PMI). PMI protects the lender if you default on your mortgage and the home goes into foreclosure

PMI usually costs about  .5% to 1% of the loan on an annual basis.  For example, on a $200,000 mortgage, your PMI would be about $1,000 to $2,000 per year. The cost is typically split up and added to your monthly mortgage payment, along with the principle, interest, and property taxes.

However, as soon as the principal balance hits 80% of the original loan amount (when you have built up 20% equity), you have the right to request that your lender cancel your PMI.. When the principal balance reaches 78% of the original loan amount, the lender is required to terminate PMI automatically, according to the Consumer Financial Protection Bureau (CFPB).

You may be able to get PMI canceled with equity appreciation even earlier, but you’ll likely have to provide evidence of your home’s current value, perhaps by getting a home appaisal. Because a home appraisal typically costs between $700 and $900, it’s often worthwhile considering PMI typically costs between 0.05% and 1% of the loan amount annually.

Toll advises clients to do their “homeowner work” and talk to the mortgage company about dropping PMI, especially if the home’s current value has increased.

“PMI is huge,” Toll says. “You can save $100, $200, $300 a month [by dropping the PMI]. It’s a huge savings.”

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