If a property is purchased with less than a 20% down payment most likely the home buyer is paying a PMI or Private Mortgage Insurance. The PMI is used to protect the lender against loss if the homeowner stops making payments on the home. Many homeowners are unaware that in many instances once the loan amount is less than 80% of value you are often able to remove the PMI and stop paying for the private mortgage insurance.
In order to cancel the PMI the homeowner must request in writing to your loan servicer that the PMI is to be cancelled and provide proof that the loan amount is 80% or less of the homes value. Lenders often require a real estate appraisal as proof that the loan is 80% or less on the homes value. At which point the homeowner will want to contact a certified and qualified appraiser to appraise their property.
Not every private mortgage insurance is the same, therefore your loan documents may have more requirements than just the 20% equity. Be sure to review your documents as well as work closely with your loan servicer to be sure you have met all of your requirements. And be aware that the decision to cancel your PMI is ultimately up to the loan servicer and they consider all of your payment history before making the decision.
Most lenders require a state certified real estate appraisal as the proof to terminate unnecessary Private Mortgage Insurance. At Brandlin Appraisals we specialize in helping homeowners like you to no longer make payment for unwanted PMI.
Give us a call today with any questions you might have at 760-741-7699 or use our contact page.
