Consumption and Real Estate
Automatic cancellation of Private Mortgage Insurance (PMI) in Illinois?
Question : Automatic cancellation of Private Mortgage Insurance (PMI) in Illinois?
I have property in Chicago, and if I were to make a large payment towards the principal of my mortgage, the mortgage would then be paid down to 78% of the ORIGINAL BALANCE. Would this automatically terminate PMI, or would I still have to have an appraisal and submit a written request to cancel PMI? Thanks.
illinois property insurance
Best answer:
Answer by Wayne Z
Should be automatic.
If you reduce the balance to 78% of property value at the time you took out your loan they have to cancel PMI unless your loan has been delinquent in the past year, you have additional liens or if you have a “high risk” loan. In most cases 78% of property value means you won’t have to make as large a payment as 78% of the original balance.
It should be automatic and an appraisal should not be necessary.