This week, USA TODAY reported many millennials don’t enter the housing market because they’re intimidated by all the confusing terminology.
From the article:
“After putting away enough savings, the biggest hurdle for Millennial buyers may be the learning curve that comes with understanding the process…”
That’s why every week I provide you with mortgage definitions and explanations for common mortgage terms.
Here’s a great example. First-time homebuyers in Virginia Beach, Norfolk, and Chesapeake, often ask me:
When can I cancel my mortgage insurance (PMI)?
Two answers.
1. PMI cancels automatically when the loan balance reaches 78% of its original value.
2. The borrower can request the PMI cancellation when the loan reaches 80% of the original value of the property (based on amortization schedule) or based on current house value (achieved through appraisal).
Here are the guidelines from MGIC, a national mortgage insurer, on how to cancel PMI.
Featured image: woodlywonderworks (Flickr)