that means you get somewhat of a “break” from paying these items for one year, right? And do I have to pay the PMI for an FHA loan for the life of the loan or will the PMI be cancelled once to the LTV reaches 80%?
Thanks.
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LTV = 80 and you have lived there at least 5 years. My PMI is listed seperate from my insurance/taxes. Some companies require you to request the PMI be removed when you hit the LTV<80 and you have made payments for at least 5 years.
You normally have to ask that PMI be removed.
So you have three questions:
1) Do I get a break from paying taxes because I paid them a year in advance?
-No, and if you were smart, you requested to open an escrow account with your servicer so those fees can be collected each month – PITI
2) Do I have to pay PMI for an FHA Loan for the life of the loan?
- No, just until you have paid 20% of the value of the home.
3) Will the PMI be cancelled once the LTV reaches 80%?
-If you want to remove PMI, you have to make that request in writing to you servicer only after you’ve paid that first 20%.