How to Avoid Private Mortgage Insurance
-
Over 50% of all mortgage loans
for residential real estate have Private Mortgage Insurance (PMI).
-
A 1998 federal law requires
lenders to allow you to
remove your PMI Insurance
once you have 20% equity in your home.
-
To avoid Private Mortgage
Insurance you may need an PMI Removal Appraisal by a
state certified appraiser. Any improvements you have made
since purchasing your home will be reflected in the report.
Common Questions
What is the cost of
a PMI Removal Appraisal?
Fees for appraisals fluctuate in different areas. A typical residential
appraisal will cost $300 - $400.
How much can I save?
Contact your lender for
the specific amount. PMI Insurance rates typically vary between
$30 - $120 per month! The table below has several examples.
You can save hundreds of dollars a year!!!
|
Monthly PMI Insurance Cost Examples |
|
Original Loan
Amount |
5% Down |
10% Down |
15% Down |
|
$100,000 |
$60.00/month |
$40.00/month |
$30.00/month |
|
$150,000 |
$90.00/month |
$60.00/month |
$45.00/month |
|
$200,000 |
$120.00/month |
$80.00/month |
$60.00/month |
*Note: These are
monthly costs!
What do I need to do
to avoid Private Mortgage Insurance?
1. Contact your lender.
Verify that you are paying PMI Insurance. Confirm that you
qualify for a PMI removal appraisal. Get their specific requirements for
exactly what you need and where to send the information. Most will
require an appraisal by a state certified or licensed real estate appraiser.
2. Use
Find-Appraisers.com
to find and contact a property appraiser in your area! Verify that
they meet your lenders experience and certification/licensing
requirements.
3. Send the report to
your lender and enjoy your lower house payment with no PMI Insurance!
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