Mortgage insurance protects the mortgage lender against any loss they may occur if a mortgage goes into default for mortgages originated with down payments less than 20%.  It allows you to get a mortgage with a smaller down payment. This means you can borrow a larger percentage of your home’s value.

Which type of mortgage insurance do you have?

If you have an FHA loan, you have a Mortgage Insurance Premium (MIP).

If you don’t have an FHA loan (which is a government loan) and you put less than 20% down on your home, you have Private Mortgage Insurance (PMI).

You can also log in to your Republic Bank Online Banking account and visit the Escrow Details page of your mortgage account to learn which type of mortgage insurance you have.

Paying for mortgage insurance

In most cases, we’ll add the insurance premium to your monthly mortgage payment. It’ll be kept in an escrow account until it’s paid.

Removing mortgage insurance

Mortgage insurance is tied to either the number of years you’ve had your loan or your loan-to-value (LTV). You may be able to cancel it at some point, depending on your loan.

The requirements for removing your mortgage insurance premium (MIP) or private mortgage insurance (PMI) depend on your loan. Keep in mind the best way to figure out when you can remove your mortgage insurance is to call us. Here are some general guidelines.

Canceling PMI

For loans covered by the Homeowners Protection Act of 1998 (HPA), you can request to have PMI removed when your balance reaches 80% loan-to-value (LTV) based on the original value of your home. If you’re requesting to have PMI removed, you:

• Must not have had any 30-day late payments within the past 12 months
• Must not have had any 60-day late payments within the last 24 months
• Must submit a request in writing
• Must be current on payments

Otherwise, we’ll automatically cancel it once you reach your origination PMI termination date.

The guidelines don’t apply to every loan so be sure to call us at 1-866-596-2739 to get the specifics on when you can remove your PMI.

• What’s mortgage insurance premium (MIP) and private mortgage insurance (PMI)? MIP and PMI are 2 types of mortgage insurance. They add a premium to your monthly mortgage payment but allow you to borrow a larger percentage of your home’s value. The type of mortgage insurance you have depends on the type of loan you have.
   
• How do I pay for MIP or PMI? In most cases, the insurance premium will be added to your monthly mortgage payment. We’ll keep the funds in an escrow account for you and pay the bills on your behalf when they’re due.
  
   
• How do I know if I have MIP or PMI?
  • You have MIP if you have an FHA loan, which is a type of government loan.
  • You have PMI if you have a loan that isn’t under a government program and your down payment was less than 20%.You can also log in to your Republic Bank Online Banking account and visit the Escrow Details page of your mortgage account to learn which type of mortgage insurance you have.
    
     
• When can my MIP be removed? Depending on when you either applied for or closed on your loan, your MIP may be automatically removed after a certain amount of time.
   
• When can my PMI be removed?
  Your PMI will be removed once the original termination date disclosed to you on the Initial PMI Disclosure is reached.
   
• How do I find my home’s original value or LTV? Your home’s original value is either the price you paid for it or the appraised value at closing, whichever is less.
  
  To calculate your LTV, divide the amount you owe on your loan by your home’s original value. Mortgage Balance divided by Home Value equals Loan-to-Value Ratio.