PMI Removal Appraisal

What is PMI (Primary Mortgage Insurance)?
Primary mortgage insurance is an insurance policy your mortgage lender compels you to purchase when you get a loan on a house. The insurance policy protects the mortgage lender from all or part of the financial damage caused if the borrower defaults on the loan. The cost of this insurance policy varies the same way the cost of a homeowners insurance policy might vary; based on the value of your home. Primary Mortgage Insurance is typically paid for as part of a borrowers regular monthly mortgage payments, and can represent a significant amount of those payments depending on the value of the home.

PMI Removal Appraiser in Naples Florida

PMI Removal Appraisal

How can I cancel or remove PMI from my monthly mortgage payments?

The typical rule of thumb for eliminating primary mortgage insurance from your mortgage payments is equity based. Many different lenders have different guidelines, but usually, once a borrower reaches the 80/20 threshold (meaning they only owe 80% of their home’s value in their mortgage; or they own 20% of the equity in their home), they can apply with their mortgage holder to have PMI removed. In many cases borrowers, through the normal course of inflation and market increases, will pass this threshold without even knowing it.

The bank isn’t going to let you know when you reach the 80/20 threshold – they want you to keep paying for PMI. It is the borrower’s responsibility to apply for PMI removal. The best way to know when you have reached the required threshold is to have your home appraised by a certified residential appraiser. The bank may also do their own appraisal on your home, but it is always a good idea to keep up to date with the value of your home so you know when the time is right to apply for PMI removal.

Trust Longview Appraisals to help you determine the value of your & your client’s real property during the process of PMI Removal.

PMI Removal Appraisal in Naples Florida