How to remove Mortgage Insurance?
Private Mortgage Insurance (PMI) is designed to protect the lender in case of default. PMI payments range from $25 to $150 or more per month. Most homeowners are paying for PMI, but many of them do not have to pay.
Most mortgage companies allow homeowners to drop PMI if they have
- had the mortgage for at least 2 years,
- a good credit history,
- and a loan balance that is 80% or less of the appraised value.
How can you tell if your loan balance is 80% or less of the appraised value? Divide your current mortgage balance by the orignal mortgage amount plus equity. You can calculate equity by adding improvements, additions, and the increase in property values.
Normally all that is required to stop paying mortgage insurance is an appraisal. Most lenders allow homeowners to obtain their own appraisals, and Sinnen-Green and Associates has the experience and knowledge to assist you!