Current Mortgage Rates

Saturday, November 21, 2009



Under Homeowner's Protection Act (HPA), you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years.

Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan. If the act applies to you, your lender is required to automatically terminate your PMI when your equity reaches 22% of the original property value at the time you took out the loan. For example, say you purchased a house valued at $100,000, paid $5,000 down, and financed $95,000. Your PMI would be cancelled when your equity reached $22,000, i.e., when the principal balance of your loan reached $78,000 (see calculation below).

Alternatively, rather than waiting for your lender to cancel the PMI, you can request that it be cancelled when your equity reaches 20% of the original value of your home (as long as it hasn't decreased in value). If your mortgage is owned by Fannie Mae, PMI can also be cancelled when your loan balance goes down to 75 percent of your home's current value, as established by a new appraisal. The loan has to be at least two years old and you must have made your mortgage payments on time. So what can you do?

  1. Find out your equity position.
  2. Call or write your loan service company and ask them for your exact loan balance.
  3. Ask your loan servicer (not the PMI insurance company) for their PMI removal Policy.
  4. Go to home gains PMI removal calculator. You will need PMI Payment/Month, your purchase price, your original down payment, current outstanding loan. This will give you your equity level and your qualification for PMI removal.
  5. If you qualify, then you will need to prove this through an accredited state appraiser. It will cost you around $400.





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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed4.75%
30-yr. fixed jumbo5.25%
15-yr. fixed4.25%
15-yr. fixed jumbo4.75%
7/1 ARM4.38%
5/1 ARM4.00%
3/1 ARM4.00%
1-yr. ARM3.75%
1-yr. LIBOR ARM4.38%
10/1 ARM4.62%
*Mortgage Rates Updated: 11/21/2009