Posted by
Auburn Fan
Member since May 2012
18345 posts

To eliminate PMI do you have to pay get below 78% of the original loan amount or of the homes current value?

Also, if you refinance does it start over from the new loan amount or is it from the original?

Alabama Fan
Member since Mar 2012
5362 posts

re: PMI
Check this thread.


ETA: Not sure if it will help or just muddy the waters even more.
This post was edited on 2/1 at 9:18 am

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Baton Rouge
Member since Mar 2007
6011 posts

re: PMI
Depends on you loan type and when the loan was taking out (rules always changing)

just got a FHA loan in June. Got a letter a the first of the year (required by law it said) that states that i must keep PMI for a minimum of 5 years, that it will automatically be removed once my scheduled payment hit the 78% threshold (as long as ii have good payment status) and that if i pay extra payments and hit the 78% threshold it was my responsibility to ask for the insurance to stop.

Also, getting an appraisal showing the value has increased no longer is valid for helping to remove PMI insurance.

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Member since Jun 2012
11036 posts

re: PMI
Typically it is 80% and it is based on the original selling price of the house. For example, if you buy a 100,000 house, you would need to put down 20,000 in order to avoid paying PMI. If you put down 10,000 that would be 10% equity, not 10,000/90,000 amount of the loan, or 11.1%.

Whether or not you pay PMI is based on the original SALES price of the home.

Now, the AMOUNT of PMI you pay per month is based on the amount of the loan.

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