Loans that have a higher than 80 ltv will require the buyer to carry insurance to guarantee their loan. In the event that you pay off 20% of your loan or have 20% do to appreciation PMI should be retired. FHA normally requires a refinance in order to retire MIP. This is one advantage of a conventional loan over a government loan. (Back to Top)

Answer: See Mortgage Letter 94-9 for instructions. You may also contact the ACH Outreach Team at (202) 537-8004. See similar questions...

PMI stands for Private Mortgage Insurance. This is usually charged to the borrower on loans where the loan amount exceeds 80% of the appraised value of the home. Most lenders want insurance on loan amounts greater than 80% of the homes value due to the risk associated with these loans. The lender has less risk on a loan amount at 80% of the homes value, than at 85, 90, or 95% of the homes value. See similar questions...