Insurance

Greater Nevada requires PMI on conventional loans where the loan to value (LTV) is more than 80% of the home’s original price or appraised value. If your down payment is less than 20% on a conventional loan, you must have PMI. The premium for the insurance is included in the monthly mortgage payments.

Once the loan value falls below that 78% threshold, the PMI will be eligible to be automatically canceled. Or, the homeowner can ask to cancel their PMI if they meet certain conditions.¹

Any cancellation requests must be made in writing. Homeowners who want to cancel their PMI must have a good payment history.²

Sometimes, we will request evidence that the value of the property has not declined below its original value³ and certification that there are no subordinate liens on the property. Fulfilling this request will be at the homeowners expense.

Homeowners can request to cancel their PMI in three scenarios if they meet the following requirements. In all cases, the homeowner must live in the mortgaged premises as their primary residence or second home. For requests based on a property’s current value or the completion of substantial improvements, Greater Nevada Mortgage will order a current appraisal to determine the current market value, for which the homeowner will be required to pay. Also, the value of the mortgage property must, at a minimum, maintain the loan-to-value ratio necessary to terminate the PMI.

Original value

The current loan to value must be 80% or less based on the original purchase price or original appraised value, whichever was lower.

Current value

The current loan to value must be:

• 80% or less if five years or more have elapsed since the origination date of the mortgage OR
• 75% or less if two or more years, but less than five years have elapsed since the origination date of the mortgage

Substantial improvements

• Major renovations, improvements or repairs have increased property’s value, and, as a result, reduced the loan to 75% or less of the fair market value.
• The property’s current market value estimate will be determined based on an appraisal after the relevant improvements have been completed.
• The appraiser must document the specific nature, extent and cost of improvements, and their effects on the estimated market value.
• The improvements must conform to local zoning and building codes.

• If a homeowner is current on their loan payments, private mortgage insurance will automatically end when the loan debt reaches 78% of the property’s original value.
• If a homeowner is not current on their loan payments, then the PMI will automatically cancel when the loan becomes current.
• If the loan is paid on time, PMI will not be required after its midway amortization date.
• If the mortgage holders agree to modify a loan’s terms or conditions in a residential mortgage transaction, the cancellation date, termination date, or final termination will be recalculated to reflect the amended terms and conditions.