Does anyone know of a mortgage lender or bank that will drop the mortgage insurance requirement once you have built 20% equity in the property ? Or know of a mortgage lender or bank that will, for consumers with excellent credit, waive the mortgage insurance requirment alotogether and let you buy the house with a smaller or no down payment?
Most will let you drop the PMI once you are at 80% value of the home. Sometimes you have to keep calling until you reach the right person. My parents were even allowed to take out a life insurance policy for the loan amount and make the benificery the mortgage company. Cost just a fraction of the PMI.
In MI, they are REQUIRED to drop PMI once you have 20% equity in the home. There's no 'finding' a lender that WILL do it. Can't say that I know of any lender or broker that will NOT require some sort of mortgage insurance on a 95-100% LTV loan.
