# PMI still on my mortgage. How long is it supposed to be there? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [December 13, 2011, 12:13am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968 "2011-12-13T00:13:48Z")\ **Posts on this page:** 12\ **Page:** 1
**Author:** ![obbn](https://avatars.discourse-cdn.com/v4/letter/o/d6d6ee/32.png) [@obbn](https://boards.straightdope.com/u/obbn)\ **Post date:** [December 13, 2011, 12:13am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/1 "2011-12-13T00:13:48Z")
Hello Everyone, I got a mortgage back in 2008 on a foreclosed home. The loan was FHA and I put almost 25% down on the house. I didn’t think that I was required to have PMI then, but the lady at the bank said that all FHA mortgages had to have PMI for the first two years. So, two years have come and gone. I have asked the bank several times to remove the PMI from my mortgage, but it has never happened. They keep saying that someone will contact me, but of course they never do. This is Bank of America btw. And yes, I know they suck, suck big time so we don’t really need to go into that. My question is: What are the rules for PMI and how the hell do I get it removed. It is $40 per month and that is money I could use elsewhere. Thanks! ---
**Author:** ![PunditLisa](https://avatars.discourse-cdn.com/v4/letter/p/4af34b/32.png) [@PunditLisa](https://boards.straightdope.com/u/PunditLisa)\ **Post date:** [December 13, 2011, 1:04am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/2 "2011-12-13T01:04:48Z")
I thought it only had to be paid if you put less than 20% down. You need to speak to a manager and be more forceful. ---
**Author:** ![obbn](https://avatars.discourse-cdn.com/v4/letter/o/d6d6ee/32.png) [@obbn](https://boards.straightdope.com/u/obbn)\ **Post date:** [December 13, 2011, 1:06am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/3 "2011-12-13T01:06:44Z")
> [@PunditLisa](#): > > I thought it only had to be paid if you put less than 20% down. You need to speak to a manager and be more forceful. That’s what I thought too, however I was told the rules for FHA were that PMI was to be paid for the first two years. Further research seems to indicate that the removal of PMI is a decision that rests solely in the hands of the bank. I meet all the requirements for removal, but one. My home doesn’t have 20% equity because prices have fallen even further since the time I bought. But even that requirement is at the discretion of the bank. ---
**Author:** ![kenobi\_65](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/kenobi_65/32/13178_2.png) [@kenobi\_65](https://boards.straightdope.com/u/kenobi_65)\ **Post date:** [December 13, 2011, 2:17am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/4 "2011-12-13T02:17:56Z")
(misread something, never mind 🙂 ) ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [December 13, 2011, 4:11am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/5 "2011-12-13T04:11:03Z")
See link below for detailed discussion of how to get rid of PMI. [http://www.goodmortgage.com/Learn/Basics/How\_To\_Remove\_PMI.html](http://www.goodmortgage.com/Learn/Basics/How_To_Remove_PMI.html) > [@](#): > > Why does PMI exist? > > Lenders have determined that those with more than 20% equity are less likely to default on the mortgage. PMI allows homeowners to purchase a home with less than 20% down by insuring the lender against default. > > If not for PMI, everyone would be required to put at least 20% down on the mortgage. > > What has changed, I hear it’s hard to get rid of PMI? > > The Private Mortgage Insurance act took effect in July of 1999. It gives homeowners a number of rights. > > 1. Lenders have to give you a written statement explaining that you have PMI and when you’ll be allowed to cancel it. > 2. The lender must allow you to cancel PMI when your equity is 22% or more. > 3. And you can ask for permission once your equity reaches 20%. > > The new law only affects new mortgages funded after July, 1999, but Fannie Mae and Freddie Mac have said they will apply the new rules to the older loans. ---
**Author:** ![PunditLisa](https://avatars.discourse-cdn.com/v4/letter/p/4af34b/32.png) [@PunditLisa](https://boards.straightdope.com/u/PunditLisa)\ **Post date:** [December 13, 2011, 4:23am UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/6 "2011-12-13T04:23:31Z")
> [@obbn](#): > > That’s what I thought too, however I was told the rules for FHA were that PMI was to be paid for the first two years. I think someone told you wrong. I’d not only demand that the $40 premium stop immediately, but I’d ask that my past premiums be refunded. [http://www.ehow.com/how\_2103802\_stop-paying-private-mortgage-insurance.html](http://www.ehow.com/how_2103802_stop-paying-private-mortgage-insurance.html) ---
**Author:** ![Quercus](https://avatars.discourse-cdn.com/v4/letter/q/7ab992/32.png) [@Quercus](https://boards.straightdope.com/u/Quercus)\ **Post date:** [December 13, 2011, 2:04pm UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/7 "2011-12-13T14:04:07Z")
> [@obbn](#): > > My home doesn’t have 20% equity because prices have fallen even further since the time I bought. Well, this is the real problem right here. I think it’s an uphill road convincing a bank to not require PMI when equity is less than 20%. Are you close enough that you can scrape up a little cash and reach 20% equity? If so, then you’re in a much better position. You could re-finance, using the cash so you only have to borrow 80%, and you won’t need PMI. Do the math, to make sure you come out ahead after paying closing costs, of course. Or, much cheaper for you, you could go to the current bank and propose paying off the mortgage to reach 20% equity in return for dropping PMI. If you already have done your homework on re-financing, you can use that as a bargaining chip with the bank: if they don’t take your offer, you’ll just go and refinance. ---
**Author:** ![Dr.Righteous](https://avatars.discourse-cdn.com/v4/letter/d/bbe5ce/32.png) [@Dr.Righteous](https://boards.straightdope.com/u/Dr.Righteous)\ **Post date:** [December 13, 2011, 2:35pm UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/8 "2011-12-13T14:35:28Z")
Once we’d gotten past that 20% mark we contacted the bank. They required us to fill out some paper work and get the house re-assessed. Even with the cost of the assessment it was worth it. The bank told us that the PMI stays on there until you act on it, and the loan officer said we’d be surprised how many people pay it way past when they need to. ---
**Author:** ![robert\_columbia](https://avatars.discourse-cdn.com/v4/letter/r/e79b87/32.png) [@robert\_columbia](https://boards.straightdope.com/u/robert_columbia)\ **Post date:** [December 13, 2011, 3:12pm UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/9 "2011-12-13T15:12:08Z")
I’ve never had a mortgage, so this may be a stupid idea. What if you just stop paying the PMI until it is cancelled for nonpayment? Or is it lumped in with the regular mortgage payment such that you’d go to foreclosure if you omitted it from your payment? ---
**Author:** ![muldoonthief](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/muldoonthief/32/3188_2.png) [@muldoonthief](https://boards.straightdope.com/u/muldoonthief)\ **Post date:** [December 13, 2011, 3:15pm UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/10 "2011-12-13T15:15:15Z")
> [@robert\_columbia](#): > > I’ve never had a mortgage, so this may be a stupid idea. > > What if you just stop paying the PMI until it is cancelled for nonpayment? > > Or is it lumped in with the regular mortgage payment such that you’d go to foreclosure if you omitted it from your payment? Exactly. PMI is part of the regular mortgage payment to the bank, and it and escrow come first. So if you shorted your payment by the amount of PMI, it would come out of the amount towards principal, not the PMI itself. ---
**Author:** ![VOW](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/vow/32/3043_2.png) [@VOW](https://boards.straightdope.com/u/VOW)\ **Post date:** [December 13, 2011, 3:31pm UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/11 "2011-12-13T15:31:48Z")
Do you have the name of the insurance company carrying the PMI, or is it the bank itself? Maybe you can do an end run around the bank. Also, if the Escrow company is still in business, maybe you can contact them for help. You are’t a client any more, but those folks often have a plethora of information. ~VOW ---
**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\ **Post date:** [December 13, 2011, 4:49pm UTC](https://boards.straightdope.com/t/pmi-still-on-my-mortgage-how-long-is-it-supposed-to-be-there/605968/12 "2011-12-13T16:49:33Z")
> [@obbn](#): > > My home doesn’t have 20% equity because prices have fallen even further since the time I bought. This is why you’re still paying it. The bank has no incentive to have you no longer pay for that coverage.