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PMI Question

Not complaining about having to pay PMI like another post on here but I AM complaining/questioning an aspect of it.

We put 12% down initially and just reached our 20% principal. We naively expected PMI to drop off our statement. Nope. I have to write them a letter requesting it be removed. Otherwise we’ll keep paying it until we’re at 22% principal paid. My question is…. Why? Is it just so the insurer can keep getting paid if we don’t notice we’ve reached that threshold? Put the onus on the homeowner to know they’re own finances? Or am I missing a legitimate reason?

submitted by /u/nobuouematsu1
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/r5mmvz/pmi_question/
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