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Private mortgage insurance

Q. We are still paying private mortgage insurance 13 years after we bought the house. The house is worth a lesser amount than the purchase price. Can we get out of paying PMI?

A. Under federal law, without regard to the value of the property, private mortgage must be terminated if you are or become current on your payments and the following point is reached

(A) with respect to a fixed rate mortgage, the date on which the principal balance of the mortgage, based solely on the initial amortization schedule for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan; and

(B) with respect to an adjustable rate mortgage, the date on which the principal balance of the mortgage, based solely on the amortization schedule then in effect for that mortgage, and irrespective of the outstanding balance for that mortgage on that date, is first scheduled to reach 78 percent of the original value of the property securing the loan.

Some mortgage companies do not comply with this law and we have brought cases complaining about such practices.

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