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Mortgage Insurance - FAQs
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- What's mortgage insurance premium (MIP) and private mortgage insurance (PMI)?
MIP and PMI are 2 types of mortgage insurance. They add a premium to your monthly mortgage payment but allow you to borrow a larger percentage of your home's value. The type of mortgage insurance you have depends on the type of loan you have. Learn more about how mortgage insurance works.
- How do I pay for MIP or PMI?
In most cases, the insurance premium will be added to your monthly mortgage payment. We'll keep the funds in an escrow account for you and pay the bills on your behalf when they're due.
- How do I know if I have MIP or PMI?
- You have MIP if you have an FHA loan, which is a type of government loan.
- You have PMI if you have a loan that isn't under a government program and your down payment was less than 20%.
- When can my MIP be removed?
Depending on when you either applied for or closed on your loan, your MIP may be automatically removed after a certain amount of time. Learn more about removing MIP.
- When can my PMI be removed?
- How do I find my home's original value or LTV?
Your home's original value is either the price you paid for it or the appraised value at closing, whichever is less.
To calculate your LTV, divide the amount you owe on your loan by your home's original value. Mortgage Balance divided by Home Value equals Loan-to-Value Ratio.
- Do I need an appraisal to remove my PMI?
If you're requesting to have PMI removed when you reach 80% LTV through the Homeowners Protection Act of 1998 (HPA), you'll need an appraisal (ordered through Republic Bank) to confirm your home's value hasn't declined since closing. Learn more about removing PMI. If you meet the requirements and want to request to have your PMI removed, please call us at 1-866-596-2739.
- Why can't you accept an appraisal you already have on file for me?
There are different types of appraisals. We can't accept one we already have on file or that you recently had because the type of appraisal we need is specific to PMI — it's more detailed and takes into account any substantial improvements you've made to your property. Appraisals for PMI removal must be ordered through our Escrow department.
- What may be considered a substantial improvement?
Something that was not previously on the property. It may add extra living space, or be something that raises the home's value. Examples may include:
- Adding a deck, garage, in-ground pool, fence, or in-ground sprinklers
- Finishing a basement
- Remodeling living space
- Flooring, siding, roof, carpeting, or windows
- Light fixtures
- Appliances or furnace/air conditioning unit