PMI stands for Private Mortgage Insurance, and it is required on mortgages with a loan-to-value ratio greater than 80%. For example, if your home was worth $100k at the time of closing, and you owe more than $80k on the loan, you are required to have PMI.

I got my annual PMI disclosure tonight, and it says that if I’ve had my loan for at least two years, and have a good payment history for at least two years, I am eligible to cancel my PMI.

It’s not a lot, mind you. But I’d love to save the ~$70/mo it costs. That’s a fifth of vodka and a bag of CBD gummies, every month.

  • Beardsley@lemmy.worldEnglish
    4·
    9 hours ago

    Talk to your local government about any upcoming mortgage grants. Every community I have worked in has some grant that comes out during specific times each year. Usually just a few grand to cover closing costs, but I’ve seen some that cover 20% with a 4 year commitment to not sell the house.

    There are also loan programs specifically meant for lower incomes; FHA typically has a higher debt-to-income threshold than conventional loans. Now, I still can’t afford a house even with that, but I have qualified many people who otherwise would not have made it past the Loan Officer.