PMI Removal Analysis
analyze_pmi_removalCalculation, not advice. Verify with a professional before acting. Compute every standard PMI-removal pathway (HPA automatic at 78% LTV, HPA borrower-requested at 80% LTV, optional re-appraisal at a simplified 75% of current market value; the actual Fannie Mae ceiling is seasoning- and property-type-dependent, 75% for a one-unit home seasoned two to five years, 80% for five-plus, and 70% for investment and two- to four-unit properties), current monthly PMI cost, total PMI dollars between now and automatic removal, and the effective annual return of paying the gap-to-80% (of the original value) as a lump sum today. Supplying original_loan_term_months and loan_age_months also applies the 12 U.S.C. 4902(c) statutory final-termination midpoint, which bounds automatic removal at the earlier of the 78% schedule and that midpoint where HPA applies and the borrower is current. Pairs with compare_mortgage_terms for the broader refinance / pay-extra / drop-PMI decision.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| toolArguments | Yes | JSON object with these parameters: current_balance: decimal > 0 (REQUIRED). Today's loan balance. original_purchase_price: decimal > 0 (REQUIRED). What you paid for the home (the purchase-price side of the HPA basis; when a closing appraisal is lower, see original_appraised_value). current_home_value: decimal > 0 (optional). When provided AND greater than the HPA original value (the lesser of purchase price and any closing appraisal), the response also computes the re-appraisal pathway (some lenders allow PMI removal based on current market value with a fresh appraisal). original_appraised_value: decimal > 0 (optional). The home's appraised value at closing. HPA sets the PMI trigger basis to the LESSER of purchase price and this appraisal (12 U.S.C. 4901); provide it when your closing appraisal came in below the purchase price. annual_pmi_rate_pct: decimal 0-5 (optional, default 0.5). Annual PMI as a percentage of the current loan balance. Typical conventional-loan PMI ranges from 0.3% to 1.5%. annual_rate_pct: decimal 0-20 (REQUIRED). Mortgage APR. monthly_payment: decimal > 0 (REQUIRED). Current P&I monthly payment (excluding tax/insurance/PMI). extra_monthly_payment: decimal >= 0 (optional, default 0). Extra principal each month beyond the regular payment. original_loan_term_months: integer 1-480 (optional). The loan's original term in months. Supplied together with loan_age_months, this computes the 12 U.S.C. 4902(c) statutory final-termination midpoint (12 U.S.C. 4901(7)) and bounds automatic_removal at the earlier of it and the 78% schedule date, where HPA applies and the borrower is current. Supplying either one without the other is rejected; both are required together. loan_age_months: integer 0-480 (optional). Months elapsed since origination. Cannot exceed original_loan_term_months when both are supplied. Supplying either one without the other is rejected; both are required together. See original_loan_term_months. Scope: conventional mortgages only. FHA loans use MIP (Mortgage Insurance Premium) with different rules. Typically MIP runs for the life of the loan when down payment < 10%. This tool does NOT model MIP. chart_title: string (optional) override for the chart title. Must not contain em-dashes or en-dashes. Max 120 characters. |