Private Mortgage Insurance(PMI)

Private Mortgage Insurance, or PMI, is a type of insurance that may be required when your down payment or equity in your home is less than 20% of your home’s value. PMI protects the lender if you stop making payments, but it also makes it possible for you to buy or refinance a home with less money upfront. 

Under certain circumstances, federal law gives you the right to cancel PMI or requires that it be automatically removed once you’ve built enough equity in your home.

Each year, you’ll receive an Annual PMI Disclosure that explains:

• How and when you can ask to cancel PMI, and
• When PMI will be automatically removed if you stay current on your payments.

You can request early PMI removal if:

• You’ve made extra payments to pay down your loan faster.
• You believe your home’s value has increased significantly.

To request removal, contact our Mortgage Call Center and ask for a PMI review.

You may need:

• A current property appraisal (ordered by the Credit Union).
• A good payment history with no recent late payments

Certain restrictions or eligibility requirements may apply based on your loan type, payment history, and property value.  

1. A written request is required.
2. A good payment history and you must be current with your mortgage loan.
3. Evidence of property value (for example, an appraisal) shows that the value hasn’t declined below the original value of the home and certification that there are no subordinate liens on the property. 
   *If appraisal is required, the member is responsible for paying for the appraisal fee. Appraisal is ordered by the Credit Union through a third party.
4. Certain restrictions may apply. Call our Mortgage Call Center to obtain more information.

If you are current on your loan payments, PMI will automatically terminate on the date the principal balance of your loan is first scheduled to reach 78% of the original value of the property. If you are not current on your loan payments as of that date, PMI will automatically terminate when the loan becomes current.