Serving Sacramento, El Dorado, Amador and Placer Counties Since 1983
PRIVATE MORTGAGE INSURANCE
What
is PMI?
Private Mortgage Insurance (PMI) is a way that lenders protect themselves against loan defaults. In general, if you put less than 20% down when you purchased your home, you are paying PMI. The PMI payment is included in your monthly mortgage payment.
What
Should You Know About PMI?
It's removable! Technically the lender is supposed to let you know this fact and perhaps you were told amidst the flood of never ending paperwork at signing. Who's going to remember all the details then? (FHA Loans Excluded)
How
Can You Remove It?
Typically your property only needs to increase 20% in value to show 20% equity on your behalf and you can have the PMI payment removed. The money you can save can really add up over the course of a year. For example, if your PMI payment is only $100 per month, that's $1200 per year you may not need to pay. Contact your lender for their particular requirements.
Where's
The Proof Of Validity? (good question)
Under the Home Owner's Protection Act, PMI Elimination Law of 1998 you may no longer be required to carry PMI. (go ahead and click that underlined title, it is a link to the law)
What
is AppraiserChris' Concern?
Generally a licensed appraiser must appraise your property. I would appreciate your business. In addition, if I can help someone save money, I think it is a good thing to let them know.
Want
Help Determining If Your Neighborhood May Qualify?
Fill in this brief information and I'll get right back to you :-)