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.
Rule of thumb when you’re trying to get approved for a loan is to disclose only what is asked for (income, debts, etc) the more you say and provide, the higher the risk is of having to do unnecessary legwork.
There’s a common understanding between loan processors that is essentially "if it’s not a detriment to the loan quality, necessary information like an additional owned rental propsrth, or an underwriting condition, the Underwriter doesn’t need to know. This is because the Underwriter is meant to scrutinize every detail of a loan. So something completely useless and innocuous could lead to a delay.