PMI, the acronym for private mortgage insurance, allows individuals to purchase their home with less than a 20% down payment. If you are paying PMI, the question you need to ask yourself is this; “can I stop paying monthly PMI into an escrow account and instead put that money into my bank account, or into my pocket?”
Every month, if you’re like most of us, you dutifully make your mortgage payment. Have you ever given any thought to exactly what makes up your monthly payment? For most of us, the mortgage payment not only pays off the mortgage loan, but a portion also gets put into an escrow account to pay for real estate taxes and a variety of different types of insurance (homeowner, hazard, flood, PMI ect).
If you purchased your home with conventional financing and put less than 20% down, it’s likely you’re paying PMI. Private mortgage insurance protects the lender or investor against loss if a borrower stops making payments. Often, homeowners mistakenly pay this insurance years after it’s no longer needed and as a result end up paying thousands in useless insurance premiums.
Here’s the good news that many homeowners don’t realize-Once you have reached 20% equity in your home by appreciation, or improvements made to the home, or by paying down the principal balance of the mortgage (or any combination of the three), you can force the lender to cancel the private mortgage insurance. All you have to do is request in writing that the private mortgage insurance be cancelled and provide the lender with proof of sufficient equity. In most cases, the necessary proof is a state certified appraisal. Ask your servicing lender to provide in writing their specific requirements to cancel PMI insurance.
Although mortgage insurance may have allowed you to purchase your home, there will be a time when this added monthly expense will no longer directly benefit you. Therefore, it is in your best interest to keep the provisions surrounding the cancellation in mind because no one is going to cancel it for you.
Most lenders require a real estate appraisal by a state certified appraiser as the primary proof required to eliminate unnecessary PMI insurance. At TruValue Real Estate Services we specialize in helping people just like you to rid themselves of this unneeded and unwanted PMI insurance.
So if you are looking to remove PMI and put that money back into your pocket or into your bank account, just give us a call at 561-568-5515. TruValue Real Estate Services offers a free initial consultation, and we can help you determine if you have sufficient equity in your home to cancel your private mortgage insurance.
When you order an appraisal report from us, you can expect. . . .
Prompt response to your initial inquiry: We will give you personalized information for your particular appraisal need. Just tell us your situation and we will make suggestions. Do you want to sell your home quickly or for the highest value?
Quick turnaround time: Typically 2-3 days from the date the request is received. If you've chosen to receive a copy of your appraisal or consulting report via the Internet (EDI), you'll receive it within MINUTES of its completion.
Appraisal and consulting reports formats to suit YOUR needs: When it comes to appraisal and consulting, "One size does NOT fit all!" We offer a variety of report types and delivery methods. We can deliver your report attached to a standard email, or notify you of an Internet site to download your report, the MINUTE it's completed!
Quick response to follow-up questions: Our reports are clearly written, understandable, and meet or exceed the Uniform Standards of Professional Practice that governs the appraisal practice. If you have any questions regarding your appraisal, after you've read the report, we encourage you to email or call us!