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How do I remove my Private Mortgage Insurance?

For loans covered by the Homeowners Protection Act of 1998 (HPA), lenders are required to remove  Private Mortgage Insurance (PMI) when your original amortized balance reaches 78% loan-to-value (LTV), provided you are up to date on your payments. You may also request to have the PMI removed from your loan under certain circumstances. Below are a few of the most common scenarios.

Original Value of Your Home

You can request that PMI be removed from your loan when your balance reaches 80% loan-to-value (LTV)* based on the original value of your home when your loan closed.  If you are requesting to have PMI removed based on the original value, you must

  • Request a property valuation ordered through Umpqua Bank to confirm your home's value hasn't declined since the closing of your loan. You will be required to provide a deposit of $150.00 and will receive an invoice or refund depending on the actual cost of the valuation.

  • Not have any subordinate liens on the property.

  • Not have had any 30-day late payments within the past 12 months.

  • Not have had any 60-day late payments within the last 24 months.

Current Value of Your Home

You can also request to have PMI removed based on the current value of your home. This will sometimes apply if you've made substantial improvements to your home or a large principal reduction in your loan balance. To have PMI removed based on the current value, you’ll need to request a property valuation through Umpqua Bank. You must also:

  • Not have any subordinate liens on the property.

  • Have a LTV of 75% or less based on the new property value, if your loan is between two and five years old.

  • Have a LTV of 80% or less based on the new property value, if your loan is over five years old.

  • Not have had any 30-day late payments within the past 12 months.

  • Not have had any 60-day late payments within the last 24 months.

FHA Loans

Mortgage Insurance Premium (MIP) may also be removed when your FHA loan meets certain criteria:

  • Closed between July 1991 and December 2000: You'll have MIP for as long as you have the loan.

  • Applied between January 2001 and June 2, 2013: MIP will be removed when you reach 78% loan-to-value (LTV), and you've owned your home for at least five years.

  • Applied on or after June 3, 2013: If your original loan amount was less than 90% LTV, MIP will be removed after 11 years. If the loan amount was 90% LTV or more, you'll have MIP for as long as you have the loan.

  • A borrower request option does not exist for this loan type.

Moving Forward

These guidelines don't apply to every loan. There are also specific guidelines based on the investor that owns your loan, as well as the occupancy status. If you have questions or need additional information please call us at (877) 367-5773.

If you think you meet the criteria and would like to move forward, please:

Umpqua Bank
PO Box 2216
Spokane WA 99210

Have a question or need additional information? Give us a call at (877) 367-5773.


 

*The amount you owe on your loan divided by your home's original value, which is either the price you paid for it or the appraised value at closing, whichever is less. This number is always expressed as a percentage.

 

 

Lending Support Services (LSS)
Give us a call at
(877) 367-5773
Mon-Fri, 7am-5:30pm.

Existing customers are encouraged to create an account at UmpquaBank.com/MortgageOnline, where they can view the details of their home loan, make one-time payments, set up automatic payments, enroll in paperless statements, use helpful payment calculators and more.