You're paying PMI with Truist, and you're wondering how to get rid of it? Excellent question! Many homeowners find themselves in this situation, and the good news is, it's often possible to stop paying Private Mortgage Insurance (PMI). It's a significant amount of money you could be saving each month, so let's dive into exactly how you can make that happen with Truist.
PMI is essentially an insurance policy that protects your lender (in this case, Truist) if you default on your mortgage. It's usually required when you make a down payment of less than 20% of the home's purchase price. While it serves a purpose, it doesn't benefit you directly as the homeowner. So, let's explore the pathways to eliminating this extra monthly expense!
The Comprehensive Guide to Getting Rid of PMI with Truist
Getting rid of PMI involves demonstrating to Truist that you have sufficient equity in your home. This can happen through various means, and the Homeowners Protection Act (HPA) of 1998 provides important guidelines for when lenders must and should cancel PMI.
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| How To Get Rid Of Pmi Truist |
Step 1: Understand Your Current Mortgage and PMI Situation
Before you can make a plan, you need to gather some crucial information about your current mortgage with Truist. This is where you engage! Do you know your original loan amount and the current outstanding balance? What was your home's original appraised value or purchase price? Grab your latest mortgage statement or log into your Truist online banking portal.
What you need to know:
- Original Loan Amount: The initial amount you borrowed for your mortgage.
- Original Home Value (or Purchase Price): This is usually the lesser of the sales price or the appraised value at the time you closed on your loan.
- Current Loan Balance: The outstanding amount you still owe on your mortgage.
- PMI Payment Amount: How much you're currently paying for PMI each month.
- Loan Type: Is it a conventional loan or an FHA loan? This makes a big difference. PMI applies to conventional loans, while FHA loans have Mortgage Insurance Premiums (MIP) with different cancellation rules. This guide primarily focuses on PMI for conventional loans.
- Payment History: Have you been consistently making on-time payments? This is critical for any PMI cancellation request.
Once you have these figures, you can start calculating your current Loan-to-Value (LTV) ratio. The LTV is calculated by dividing your current loan balance by your home's original value (or appraised value, depending on the method you're pursuing).
Formula for LTV:
QuickTip: Look for lists — they simplify complex points.
For example, if your original home value was $200,000 and your current loan balance is $160,000, your LTV is . This 80% mark is often key!
Step 2: Explore the Pathways to PMI Removal
There are several ways to get rid of PMI with Truist, each with its own requirements and timelines. Let's break them down.
Sub-heading 2.1: Automatic PMI Termination (The "Hands-Off" Approach)
This is the easiest way to get rid of PMI, as it happens automatically based on the Homeowners Protection Act (HPA).
- When it happens: Truist is required to automatically terminate your PMI when your mortgage loan balance is scheduled to reach 78% of your home's original value, assuming your payments are current.
- Important Note: This calculation is based on the original amortization schedule of your loan, not necessarily on any extra payments you might have made.
- The Catch: If you're not current on your payments when your loan reaches this point, the termination will occur on the first day of the first month after you become current.
- Why it might not be ideal: While convenient, waiting for automatic termination might mean you pay PMI for longer than necessary, especially if your home's value has appreciated significantly.
Sub-heading 2.2: Requesting Early PMI Cancellation (The Proactive Approach)
This is often the most desirable route for homeowners who want to stop paying PMI sooner. You can request that Truist cancel your PMI once your loan-to-value (LTV) ratio reaches 80% of your home's original value.
- Key Requirements for Requesting Cancellation:
- Written Request: You must submit a written request to Truist to cancel your PMI. This is a crucial step – they won't just know you've hit the threshold.
- Good Payment History: Truist (and the HPA) requires a solid payment history. Generally, this means no payments 30 days or more past due within the past 12 months, and no payments 60 days or more past due within the past 24 months. Be meticulous with your payments!
- No Subordinate Liens: You must certify that there are no other liens on your property (e.g., a second mortgage or a home equity line of credit) that would reduce your equity.
- No Decline in Home Value: Truist may require evidence that your home's value has not declined below its original value. This might necessitate a new appraisal, which we'll discuss next.
- Current on Payments: At the time of your request, your mortgage payments must be completely current, with no outstanding late charges.
Sub-heading 2.3: PMI Removal Based on Increased Home Value (Leveraging Appreciation)
If your home has appreciated significantly since you purchased it, or if you've made substantial improvements, you might be able to get rid of PMI even sooner. This method relies on your current home value rather than the original.
QuickTip: Don’t ignore the small print.
- How it works: You'll need to demonstrate to Truist that your current LTV (based on your current appraised value) is at or below the required threshold.
- Appraisal is Key: To prove your home's increased value, you'll almost certainly need to order a new home appraisal from a Truist-approved appraiser. You will typically be responsible for the cost of this appraisal.
- Truist Specifics (and general guidelines):
- For conventional loans, you can often request cancellation based on current value when your LTV is 80% or less.
- Some lenders may have a "seasoning" requirement, meaning you need to have owned the home for a certain period (e.g., at least two years) before you can request cancellation based on a new appraisal.
- If you've owned the home for less than five years, some lenders might require a lower LTV (e.g., 75%) based on the new appraisal. If you've owned it for five years or more, 80% LTV is often acceptable.
- Substantial improvements to your home (like a major renovation or addition) might waive the seasoning requirement, allowing for an earlier appraisal-based cancellation, provided the improvements significantly increased the home's value.
Sub-heading 2.4: Refinancing Your Mortgage (A More Involved Option)
Refinancing your mortgage can be an effective way to eliminate PMI, especially if current interest rates are lower than your existing rate or if your home's value has increased substantially.
- How it works: You apply for a new mortgage loan. If your new loan-to-value (LTV) is 80% or less (based on the new appraisal for the refinance), you won't be required to pay PMI on the new loan.
- Considerations:
- Closing Costs: Refinancing involves closing costs, which can be thousands of dollars. You need to weigh these costs against the savings from eliminating PMI and potentially securing a lower interest rate.
- New Loan Term: Be mindful of whether you're extending your loan term (e.g., from a 15-year to a new 30-year loan) as this could mean paying more interest over the life of the loan, even with a lower interest rate.
- Credit Score: A good credit score will help you qualify for the best refinance rates.
- When it's a good idea: Refinancing is particularly attractive if interest rates have dropped, your home value has surged, or you need to consolidate other debts.
Step 3: Taking Action – Your Step-by-Step Guide
Now that you understand the different paths, let's outline the practical steps to getting rid of PMI with Truist.
Sub-heading 3.1: Contact Truist Mortgage Client Services
Your first and most important step is to directly contact Truist's mortgage client services. They can provide you with the most accurate and up-to-date information specific to your loan.
- How to contact them:
- Call Truist Mortgage Client Services: Their general contact number is 800-634-7928. It's best to call during their business hours (Monday-Friday: 8 am - 8 pm ET; Saturday: 9 am - 3 pm ET).
- Check their website:
truist.com/mortgage/manage-your-mortgage
- What to ask:
- "What are the specific requirements for canceling PMI on my conventional loan?"
- "What is my current loan balance and original appraised value?"
- "What is my original amortization schedule to reach 78% LTV for automatic termination?"
- "If I want to request early cancellation based on current value, what is the process, what LTV is required, and do I need a new appraisal? If so, which appraisers do you accept?"
- "Do you have a specific written request form for PMI cancellation?"
Sub-heading 3.2: Prepare Your Written PMI Cancellation Request
Once you have all the information from Truist, prepare a formal written request. Even if they provide a form, a polite, concise letter can reinforce your request.
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What to include in your letter:
- Your full name(s) as on the mortgage
- Your Truist mortgage loan number
- The property address
- A clear statement that you are requesting the cancellation of Private Mortgage Insurance (PMI)
- The reason for your request (e.g., "my loan balance has reached 80% of the original value," or "my home's value has significantly increased, and I believe my LTV is now below 80%")
- Reference your good payment history.
- Your contact information (phone and email)
- Your signature and date
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Example Snippet for your Letter: "Dear Truist Mortgage Client Services,
I am writing to formally request the cancellation of Private Mortgage Insurance (PMI) on my mortgage loan, account number [Your Loan Number], for the property located at [Your Property Address].
Based on my calculations, my loan balance has reached [Your Current Loan Balance] which, compared to the original appraised value of [Original Appraised Value], results in a loan-to-value (LTV) ratio of [Your Calculated LTV]%. I understand that the Homeowners Protection Act allows for borrower-requested PMI cancellation at 80% LTV.
I confirm that I have maintained a good payment history with no late payments in the past 24 months, and there are no subordinate liens on the property.
OR, if based on current value:
...Based on significant home appreciation/improvements, I believe my current LTV is now below 80%. I am prepared to provide a new appraisal to confirm the current market value of my home. Please advise on the accepted appraisal process and your requirements for cancellation based on current value."
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Send it "Certified Mail, Return Receipt Requested": This provides proof that Truist received your request. Keep a copy for your records.
Sub-heading 3.3: (If Needed) Obtain a New Home Appraisal
If you are pursuing PMI cancellation based on an increased home value, this step is crucial.
- Work with Truist: Ask Truist for a list of approved appraisers or their requirements for a third-party appraisal. Using an appraiser they trust can expedite the process.
- Schedule the Appraisal: The appraiser will visit your home to assess its current market value.
- Cost: Be prepared to pay for the appraisal, which can range from a few hundred dollars to more, depending on your location and property. Consider this an investment to save money on PMI in the long run.
- Submit the Appraisal: Once you receive the appraisal report, forward it to Truist as instructed.
Sub-heading 3.4: Follow Up Diligently
After submitting your request and any supporting documents (like an appraisal), don't just wait. Follow up with Truist regularly to check on the status of your request.
Tip: Review key points when done.
- Be persistent but polite: Call their client services department periodically. Note down the date and time of your calls, who you spoke with, and what was discussed.
- Escalate if necessary: If you encounter obstacles or a lack of response, politely ask to speak with a supervisor.
- Keep detailed records: Maintain a file with copies of all correspondence (letters, emails, appraisal reports), dates of calls, and notes from conversations. This will be invaluable if any issues arise.
Step 4: Confirm PMI Cancellation and Adjust Your Payments
Once Truist approves your PMI cancellation, they will notify you.
- Verify the Change: Carefully review your next mortgage statement to ensure that the PMI charge has been removed.
- Confirm New Payment Amount: Your monthly mortgage payment should decrease. Make sure the new amount is correct.
- Automatic vs. Manual Adjustments: If you have automatic payments set up, ensure they are updated to reflect the new, lower amount.
Congratulations! You've successfully navigated the process of getting rid of PMI with Truist. Enjoy the extra money in your pocket each month!
Related FAQ Questions
Here are 10 frequently asked questions about getting rid of PMI, focusing on the "How to" aspect:
How to calculate my current loan-to-value (LTV) ratio?
To calculate your LTV, divide your current outstanding mortgage balance by your home's current appraised value (if you're using a new appraisal) or its original value (if you're using the automatic or 80% original value method), then multiply by 100 to get a percentage.
How to know if my Truist loan is a conventional loan or an FHA loan?
You can find this information on your original loan documents, your mortgage statement, or by contacting Truist Mortgage Client Services directly. FHA loans have "MIP" (Mortgage Insurance Premium) which has different rules than PMI.
How to request PMI cancellation in writing from Truist?
Draft a formal letter including your name, loan number, property address, and a clear request for PMI cancellation. State the reason (e.g., 80% LTV achieved or significant home appreciation). Send it via certified mail with a return receipt requested.
QuickTip: Stop and think when you learn something new.
How to get an appraisal for PMI removal with Truist?
Contact Truist Mortgage Client Services and ask for their list of approved appraisers or their guidelines for selecting an independent appraiser. You will typically be responsible for the cost of this appraisal.
How to check my payment history for PMI cancellation requirements?
You can review your past mortgage statements or log into your Truist online banking account to view your payment history. Ensure you have no late payments (30 days or more) in the last 12 months and no very late payments (60 days or more) in the last 24 months.
How to know when my PMI will automatically terminate with Truist?
Truist is required to automatically terminate PMI when your loan balance is scheduled to reach 78% of your home's original value. You can contact Truist or review your original amortization schedule to find this date.
How to deal with Truist if they deny my PMI cancellation request?
If your request is denied, ask Truist for the specific reasons in writing. Address any issues they raise (e.g., provide required documents, improve payment history). If you believe the denial is unfounded or violates the Homeowners Protection Act, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
How to determine if refinancing is a good option for removing PMI?
Evaluate current interest rates to see if you can get a lower rate, calculate potential closing costs for the new loan, and compare the total savings from eliminating PMI against these costs. Consider if you'd be extending your loan term. Consult with a Truist mortgage loan officer for personalized advice.
How to ensure extra payments go towards the principal to speed up PMI removal?
When making extra payments, explicitly designate them for the "principal" portion of your loan. You can usually do this when making online payments, through a written note with a mailed check, or by confirming with Truist customer service.
How to avoid PMI when buying a home with Truist in the future?
To avoid PMI from the outset, aim for a down payment of 20% or more of the home's purchase price when securing a conventional mortgage.
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