PMI Removal

PMI is an acronym for private mortgage insurance. If, when you bought your house, you had a down payment of less than 20% you were most likely required to purchase PMI. This mortgage insurance is required to protect the lender against loss in the event that it forecloses and then sells the house at auction for less than you owe on it. The insurance company will cover the lender's loss. If you have PMI, each month a premium is added to your mortgage payment to pay for the coverage.

A recently enacted federal law may allow you to stop paying for PMI once your equity has reached 20% of the property's current value. This 20% threshold can be reached by paying off enough of the principal on your loan, improvements to the property, rising local property values or any combination of these factors. The burden is on you, the borrower, to prove that you have sufficient equity. If you think you may be paying PMI unnecessarily, contact us about having your property appraised.