Given a passage and a query based on the passage, generate an unambiguous, concise and simple answer to the query from information in the passage. Note that the answer may not be present in exact form.
Q: You'll be required to carry private mortgage insurance if you don't have enough cash to make a 20% down payment on a home. It costs anywhere from 0.20% to 1.50% of the balance on your loan each year, based on your credit score, down payment and loan term. Keep the annual summaries until you retire or close the account. Bank records: Length of time to keep, and why: From one year to permanently. Go through your checks each year and keep those related to your taxes, business expenses, home improvements and mortgage payments. Shred those that have no long-term importance. Brokerage statements Once you've committed to paying PMI, you'll usually have to keep it for at least two years. If your home has appreciated enough to give you 25% equity after two to five years, you can cancel the coverage. After five years, you just need 20% equity to ditch it. One thing to keep in mind: If you have a second mortgage, such as a home equity loan or home equity line of credit, that reduces your equity. Say your home is worth $200,000, and you owe $140,000 on your first mortgage. That gives you 30% equity, or $60,000. FHA mortgage insurance depends on when you got your loan, and also your loan term. Before the rule was that you lost your MI when your LTV got down to 78% and you have had the mortgage for at least 5 years. Newer loans now have MI for the entire duration of the mortgage in many cases. Shred those that have no long-term importance. Brokerage statements: Length of time to keep, and why: Until you sell the securities. You need the purchase or sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time. Bills: Length of time to keep, and why: From one year to permanently Why would you do a FHA loan again if you have that type of value. You could get a conventional 15 yr fixed rate for about a percent less and not have any mortgage insurance January 22 2015 You have the option to get a mortgage insurance for the length of your mortgage contract, or you can choose 10 years, 15 years, 20 years, 40 years, etc. You have the option to get a mortgage insurance for the length of your mortgage contract, or you can choose 10 years, 15 years, 20 years, 40 years, etc. You'll also have to keep paying the annual premiums for the life of the loan. Unlike private mortgage insurance on conforming loans, you can't drop FHA mortgage insurance when your equity reaches 20% or 25%. RATE SEARCH: Shop the lowest mortgage rates. Private mortgage insurance You can't take everything with you, but you should safely store or electronically scan and save certain essential documents. The following are suggestions about how long you should keep personal finance and investment records on file: Query: how long do you have to keep mortgage insurance
A:
Keep mortgage insurance for at least 5 years.