PMI Removal Appraisals
Unleash Your Home’s Equity – Say Goodbye to PMI
Private mortgage insurance (PMI) allows homebuyers to own a home with less than a 20% down payment. If you’re currently paying PMI, the crucial question to ask is, “Is it time to stop paying monthly PMI into an escrow account and start putting that money back in your pocket?”
Understanding the Weight of PMI
Each month, your mortgage payment includes various components. In addition to your loan repayment, a portion goes into an escrow account to cover real estate taxes and different types of insurance, such as homeowners, hazard, flood, and PMI.
When PMI Becomes a Necessity
If you acquired your home with conventional financing and put down less than 20%, you’re likely paying PMI. PMI safeguards the lender in case a borrower defaults. Unfortunately, many homeowners continue paying PMI long after it’s needed, resulting in significant premium expenses.
The Path to Removing PMI
The good news is that once you, as a homeowner, accumulate 20% equity in your home through appreciation, improvements, or principal balance payments, you have the right to request PMI removal from your lender. A state-certified appraisal serves as proof of exceeding 20% equity, making you eligible for removal.
The Rise of Mortgage Insurance
PMI is commonly required when homebuyers put down less than 20%. Its popularity lies in enabling millions of Americans to become homeowners with smaller down payments.
The Lender’s Role in PMI
The lender or entity holding your mortgage loan ultimately decides PMI requirements. They set the equity threshold for PMI removal. It’s essential for homeowners to keep in touch with their loan servicer to understand the PMI cancellation process.
Steps to Cancel PMI
To initiate PMI cancellation, reach out to your loan servicer, the institution receiving your mortgage payments. They’ll guide you through the process and provide details on your remaining mortgage balance. Different servicers may have varying cancellation policies, so request written requirements from your servicing lender.
Your Role as a Financial Advisor
In managing your finances, you are your own best advisor. Removing unnecessary PMI is a key step to increase your savings. Continuing to pay PMI when it’s not required negatively impacts your finances.
Expert PMI Removal Appraisals
Most lenders require a real estate appraisal by a state certified appraiser as the primary proof required to eliminate unnecessary PMI insurance. At Choice Appraisal Services, LLC we specialize in helping people just like you rid themselves of unneeded and unwanted PMI insurance.
We offer a free initial consultation and will help you to determine if you have sufficient equity in your home to enable you to cancel your PMI.
Give us a call today with any questions you might have at 502-309-2323 or fill out a request for a free quote.
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