Have you ever wondered if there's a way to chip away at your monthly mortgage payment and keep more of your hard-earned money? If you have a Truist mortgage and are currently paying Private Mortgage Insurance (PMI), the answer is a resounding yes! Removing PMI can significantly reduce your monthly housing expenses, putting those extra dollars back in your pocket. This comprehensive guide will walk you through everything you need to know about removing PMI from your Truist mortgage, step by step, so you can start saving sooner rather than later.
Understanding Private Mortgage Insurance (PMI)
Before we dive into the "how-to," let's quickly clarify what PMI is. PMI is an insurance policy that protects your lender (in this case, Truist) in case you default on your mortgage payments. It's typically required when you make a down payment of less than 20% of the home's purchase price on a conventional loan. While it protects the lender, you are the one paying the premiums, which are usually rolled into your monthly mortgage payment.
The good news is, PMI isn't forever! The Homeowners Protection Act (HPA) of 1998 sets guidelines for when PMI must be automatically terminated and when you can request its cancellation. Truist, like all lenders, adheres to these federal regulations.
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| How To Remove Pmi From Truist Mortgage |
The Path to Eliminating PMI from Your Truist Mortgage: A Step-by-Step Guide
Getting rid of PMI might seem daunting, but by following these clear steps, you can navigate the process effectively and potentially save thousands over the life of your loan.
Step 1: Confirm Your Loan Type and PMI Status
The very first thing you need to do is confirm that your mortgage is a conventional loan and that you are indeed paying PMI. While this guide focuses on conventional loans, it's worth noting that FHA loans have different mortgage insurance premium (MIP) rules that are often much harder to remove.
Tip: Absorb, don’t just glance.
- Action:
- Review your monthly mortgage statement from Truist. You should see a line item for "PMI," "Private Mortgage Insurance," or something similar.
- If you're unsure, or can't find this information, don't hesitate to call Truist's mortgage services directly. Their customer service representatives can confirm your loan type and whether you're paying PMI. You can generally find their contact information on your statement or their official website.
Step 2: Understand the Key Milestones for PMI Removal
There are primarily two ways PMI can be removed from your Truist mortgage, as dictated by the Homeowners Protection Act:
Automatic Termination (78% Loan-to-Value)
- The Law: Truist is legally obligated to automatically terminate PMI once your loan balance is scheduled to reach 78% of your home's original value (the lesser of the sales price or appraised value at the time you took out the loan). This applies as long as your mortgage payments are current.
- What it Means for You: This is the "hands-off" approach. If you simply continue making your scheduled payments, Truist will eventually remove PMI when you hit this 78% mark based on your original amortization schedule. However, waiting for automatic termination means you'll pay PMI longer than necessary if you've gained equity faster.
Borrower-Initiated Cancellation (80% Loan-to-Value)
- The Opportunity: You have the right to request cancellation of PMI once your loan balance reaches 80% of your home's original value. This is often the quickest way to remove PMI without refinancing.
- Key Requirements (as per Truist and HPA):
- Good Payment History: You must have a strong payment history. Truist typically requires no 60-day delinquencies in the past 24 months and no 30-day delinquencies in the past 12 months.
- No Junior Liens: There should be no other liens on your property, such as a second mortgage or home equity line of credit (HELOC), unless explicitly approved by Truist.
- Home Value Has Not Declined: Truist may require an appraisal to confirm that the value of your home has not decreased since you took out the mortgage. You would typically be responsible for the appraisal cost.
Step 3: Calculate Your Loan-to-Value (LTV) Ratio
This is where the numbers come in, and it's crucial for determining your eligibility. Your LTV ratio is calculated by dividing your current mortgage loan balance by your home's value.
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To calculate your LTV for requesting cancellation based on original value:
- Find Your Original Home Value: This is typically the purchase price or the appraised value at the time you closed on your loan, whichever was lower. You can find this information on your original loan documents.
- Find Your Current Loan Balance: This can be found on your latest Truist mortgage statement or by logging into your online Truist mortgage account.
- Calculation: (Current Loan Balance / Original Home Value) x 100 = LTV %
Example: If your original home value was $200,000 and your current loan balance is $160,000: ($160,000 / $200,000) x 100 = 80% LTV
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To calculate your LTV for requesting cancellation based on current value (if applicable):
- Find Your Current Loan Balance: As above.
- Obtain a Current Home Appraisal: This is where you would hire an appraiser to determine the current market value of your home. This is especially useful if your home's value has increased significantly due to market appreciation or improvements you've made.
- Calculation: (Current Loan Balance / Current Appraised Value) x 100 = LTV %
Truist's specific requirements for using current value for PMI removal may vary based on the age of your loan and the required LTV percentage. Generally, if your loan is between two and five years old, you might need an LTV of 75% or less. If your loan is over five years old, an 80% LTV based on the new valuation might be acceptable. It's essential to confirm these specific thresholds with Truist directly.
Step 4: Contact Truist Mortgage Services
Once you believe you meet the criteria, it's time to reach out to Truist.
- Phone Call: The most direct way is to call their mortgage customer service line. Be prepared with your loan number and any calculations you've made.
- For mortgages originated with SunTrust: 1-800-634-7928
- For mortgages originated with BB&T: 1-800-295-5744
- For all other needs: 1-844-4TRUIST (1-844-487-8478)
- Written Request: It's highly recommended to follow up any phone conversation with a written request for PMI cancellation. This creates a paper trail and ensures all details are clear.
- What to include in your written request:
- Your full name and address
- Your Truist mortgage loan number
- A clear statement that you are requesting PMI cancellation
- The reason for your request (e.g., "My loan balance has reached 80% of the original home value," or "My home's current appraised value has resulted in an LTV of X%")
- Any supporting documentation (e.g., a recent appraisal report if you're using current home value).
- What to include in your written request:
Step 5: Undergo the Appraisal Process (if required)
If Truist requires an appraisal to verify your home's current value for PMI cancellation, you'll need to cooperate with this process.
Tip: Make mental notes as you go.
- Cost: Be aware that you will typically be responsible for the cost of the appraisal. This fee can vary but is generally a few hundred dollars.
- Truist's Approved Appraiser: Truist will likely require that the appraisal be conducted by an appraiser from their approved panel. Do not commission an appraisal independently without confirming this with them first.
- Scheduling and Access: You'll need to schedule a time for the appraiser to visit your home and provide them with access to all areas.
Step 6: Await Truist's Decision and Confirmation
After submitting your request and any required appraisal, Truist will review your eligibility.
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- Processing Time: The time it takes for Truist to process your request can vary, but generally, it should be within a reasonable timeframe (e.g., 30-45 days).
- Notification: You should receive a written notification from Truist confirming whether your PMI cancellation request has been approved or denied.
- If Approved: Congratulations! Your PMI payments will cease, and your monthly mortgage payment will decrease accordingly. The notification should specify the effective date of the cancellation.
- If Denied: Don't despair. The notification should explain the reason for the denial. It could be due to a low appraisal, insufficient equity, or issues with your payment history. You can then address these issues and potentially reapply in the future.
Step 7: Monitor Your Mortgage Statement
Once you receive confirmation that PMI has been removed, carefully review your subsequent mortgage statements from Truist to ensure the PMI charge is no longer included. If it is, contact Truist immediately to rectify the situation.
Beyond the Basics: Other Considerations for PMI Removal
Refinancing Your Mortgage
- When it Makes Sense: If current interest rates are significantly lower than your existing rate, or if you want to change your loan terms (e.g., from an adjustable-rate to a fixed-rate mortgage), refinancing can be an excellent option to eliminate PMI. When you refinance, you essentially get a new mortgage. If your new loan-to-value is 80% or less, you won't need PMI.
- Costs Involved: Be mindful of closing costs associated with refinancing, which can offset some of your savings from PMI removal. Calculate if the long-term savings outweigh these upfront costs.
- Truist Refinance Options: Truist offers various refinance options. You can explore these on their website or by speaking with a Truist mortgage professional.
Paying Down Your Principal Faster
- Accelerated Payments: Even without a formal refinance, you can accelerate your equity build-up by making extra payments toward your mortgage principal. This could be:
- Making one extra principal payment per year.
- Rounding up your monthly payment.
- Making bi-weekly payments (which results in 13 full monthly payments per year).
- Applying any windfalls (bonuses, tax refunds) directly to your principal.
- Impact: By reducing your principal balance faster, you'll reach the 80% (or 78%) LTV threshold sooner, allowing you to remove PMI earlier.
Home Improvements and Appreciation
- If you've made significant renovations or if your local housing market has seen substantial appreciation since you bought your home, your current home value might be much higher than your original value. This can help you reach the necessary equity threshold faster. In such cases, requesting an appraisal is key to demonstrating this increased equity.
10 Related FAQ Questions
Here are 10 frequently asked questions about removing PMI, with quick answers, designed to help you further:
How to calculate my loan-to-value (LTV) ratio?
Your LTV ratio is calculated by dividing your current mortgage loan balance by your home's value (either original purchase price/appraised value or a new appraised value if applicable), then multiplying by 100 to get a percentage.
QuickTip: Revisit posts more than once.
How to contact Truist to request PMI removal?
You can contact Truist mortgage services by phone. For mortgages originated with SunTrust call 1-800-634-7928, for BB&T call 1-800-295-5744, and for all other needs call 1-844-4TRUIST (1-844-487-8478).
How to know if my mortgage has PMI?
Check your monthly Truist mortgage statement for a line item labeled "PMI" or "Private Mortgage Insurance." If you can't find it, call Truist mortgage services to confirm.
How to get a home appraisal for PMI removal?
If Truist requires an appraisal, they will likely provide you with a list of approved appraisers or arrange for one themselves. You will typically be responsible for the appraisal fee.
How to request PMI cancellation in writing?
Send a letter to Truist's mortgage department including your full name, address, loan number, a clear request for PMI cancellation, the reason for your request, and any supporting documentation like an appraisal.
QuickTip: Look for lists — they simplify complex points.
How to know if I have a good payment history for PMI removal?
Truist generally requires no 60-day late payments in the past 24 months and no 30-day late payments in the past 12 months for borrower-initiated PMI cancellation.
How to speed up PMI removal?
You can speed up PMI removal by making extra principal payments on your mortgage or by refinancing your loan if current interest rates are favorable and your LTV is at or below the 80% threshold.
How to remove PMI if my home value has increased significantly?
If your home's value has increased, you can request an appraisal to establish a new, higher current market value. If this new value brings your LTV to the required percentage (e.g., 80% or 75% depending on loan age), you can then request PMI cancellation based on that new valuation.
How to deal with a denied PMI removal request from Truist?
If your request is denied, Truist should provide a reason. Understand the reason (e.g., insufficient equity, poor payment history, issues with appraisal) and work to address it before reapplying in the future.
How to find my original home value for PMI calculations?
Your original home value is typically the lesser of the purchase price or the appraised value at the time you closed on your mortgage. You can find this information on your original loan documents.
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