Lenders typically require private mortgage insurance when a down payment is less than 20% of the home’s purchase price. The Homeowners Protection Act requires lenders to automatically cancel PMI when the home’s LTV reaches 78%. However, you have a couple options before it reaches that level. Once the value of your home has increased to the point where the LTV is 80% or less, you can:

• Contact your loan servicer and ask that the PMI be removed.
• Refinance your loan with NOVA, with no closing costs.

With refinancing, in addition to removing the PMI, you may be able to lower your interest rate or get a shorter term, both of which can save you a significant amount of money over the life of your loan. An additional option, if you have the available funds, is to make a single lump sum payment toward your principal to reduce to your LTV to 78% so it is automatically removed.

Contact a NOVA Home Loan Officer for details on which option is best for you.

The Program information shown is for informational/educational purposes only and does not represent a commitment to lend or extend credit. Other terms and conditions may apply. Contact your Loan Officer for more details.