How can I avoid Private Mortgage Insurance?

PMI is typically required if the Loan to value is 80% or higher. Many lenders will allow you stop paying PMI once you have either paid down your loan below 80% LTV, or your property has increased in value to the point were the new Loan To Value ratio is less than 80%. You will be required to have the home appraised to prove the new market value of your home if it has increased.

Some lenders also offer loan programs such as an 80/20 were you have a first mortgage for 80% LTV and then a second mortgage for the remaining 20% at a higher interest rate but without PMI.

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