How can I avoid paying for Private Mortgage Insurance?
PMI is typically required if the Loan-to-Value is 80% or higher. Many lenders will allow you to stop paying your PMI once you have either paid down your loan below an 80% LTV, or your property has increased in value to the point where the new Loan-to-Value ratio is less than 80%. You would be required to have your home appraised to prove the new market value of your home if it has increased. Some mortgage lenders offer loan programs such as an 80/20, where your first mortgage is for an 80% LTV and the second mortgage for the remaining 20% is at a higher interest rate.
