Before the crash PMI automatically dropped off after so many years on loans with less than 10% down. Now it stays for life unless the loan is refinanced. A new policy that the insurance be dropped automatically after 7 years of on time payments would help free up monthly income for people not force them to incur unnecessary refinance fees to go into a conventional loan. This policy would likely help struggling families and young purchasers keep their homes and free up cash for other things that they need like food and gas and kids. If the policy is passed it could potentially free up hundreds of dollars and provide financial relief to millions of people now and a financial reprieve in the future after 7 years passes.
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