re: Am I entitled to a refund of my PMI?

quote:

---

Thanks for the reply. My understanding during the loan and closing process was that the mortgage company I used (Franklin American Mortgage FWIW) was paying the PMI upfront and then financing all the PMI over my 360 payments, meaning my payment would never go down even once I got below 80% LTV.

---

Keep in mind that your Year 1 PMI that you put into the loan probably equals to something like $14 a month over 30 years. However, you probably contribute about $360 a month to the escrow account for year 2, then year 3, then year 4, so on and so on. Once you reach 80% LTV you shouldnt have to pay the $360/mo ($4,300+), but you will still have to pay the $14/mo because you financed that. PMI or first year of Homeowners or first year of Flood, it doesnt matter. If you finance that first year up front, that first year will be spread over the life of the loan.