That is correct. Its basically 2 loans to cover the 80%. There are also online providers who can offer loans without PMI (and offering a mortgage for more than 80%).

FrankN wrote: Interestingly enough, you can get a mortgage for more than 80% of the value of your home and not pay PMI. It is a complicated process, but it is possible. I am happy to share those details if you are interested.

Frank, does this involve doing something called "piggy backing" the loan? I had a friend trying to explain this to me and it did sound like a very complicated process.

Interestingly enough, you can get a mortgage for more than 80% of the value of your home and not pay PMI. It is a complicated process, but it is possible. I am happy to share those details if you are interested.

Thank you for the answer. Of course, the bank didn't provide any real information on this. My parents are well past 80% of the loan balance so I will tell them to talk to the bank. That would save them quite a chunk each month.

By law, the lender is supposed to tell you the percentage when you close on your house but most people either misunderstand or forget what it it. In general, once your loan balance gets to 80% or less of the original appraisal amount, you can ask them to remove the need for PMI. Hope this helps!

My parents bought a house on a 30-year mortgage only 15 years ago. It was with a VA loan so I think their interest rate is low. I know their mortgage payment is very low. My mom has to retire as soon as possible for health reasons so they're trying to figure things out. I told her that she should find out her equity and drop PMI if she had enough in the property. I don't know how much it would save her but I know it would be something. I can't remember what the usual percentage of equity is in order to not be required to buy PMI, though. Does anyone know?