What is meant by 'pre-issuance' in regards to mortgage insurance?
What is the purpose and and benefits of per mortgage insurance.
Keep track of your payments on the principal of the mortgage. When you reach 80% equity, notify the lender that it is time to discontinue the PMI premiums. To make it easier, lenders are now required to tell the buyer at closing how many years and months it will take for them to pay 20% of the principal to cancel PMI.
However, U.S. law does allow lenders to continue requiring PMI all the way down to 50% equity for so-called high-risk borrowers.
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