Many 1st time Wisconsin homebuyers are required to have mortgage insurance also know as PMI, or Private Mortgage Insurance on their loan. Often the question arises when can mortgage Insurance be removed?

On a conventional loan you can request your pmi to be removed once the ratio of your loan amount to the value of your home reaches 80%. These are based on the purchase price at the time of loan or the appraised value at the time of original refinance. The lender will probably require than an appraisal be done to be certain your loan to value is at 80%. Once your loan is at 78% the pmi will automatically drop off and no new appraisal will be needed.

If you have done improvements to your home or your house value has gone up talk to a lender to see if a refinance to remove Private Mortgage Insurance is a good option for you.