QDEAR BOB: I have a FICO score ...
QDEAR BOB: I have a FICO score of 750 and wonder why I am still paying private mortgage insurance. -- Jennifer R.</br></br>When you bought your house or condo, you probably paid little or no cash down. Because of your high credit score, your lender approved a high loan-to-value ratio mortgage. The lender insisted on PMI to eliminate its foreclosure loss risk.</br></br>Until you have at least 20 percent equity, your lender still views you as a high risk, which requires PMI to protect the lender.</br></br>Also, until your home loan has at least 24 months of on-time monthly payments, most mortgage lenders will refuse to cancel PMI. Some especially nasty lenders will not cancel PMI until the loan balance declines below 80 percent of its original balance, ignoring your home improvements and market value appreciation.</br></br>That usually takes 10 to 15 years, depending on your interest rate. If you have one of these really bad lenders, refinance with a different lender.