PMI Removal Appraisals

PMI is the acronym for private mortgage insurance. This allows individuals to purchase their home with less than 20% down payment. If you have more than 20% equity in your home, you may qualify to have your PMI removed from your monthly mortgage payment. If a home is purchased with less than 20% down payment, it’s common for private mortgage insurance (PMI) to be required by the lender. This can add a significant amount to your monthly mortgage.

Many lenders require a homeowner to have at least 20-23% equity (the percentage differs slightly between lenders and loan types) in their home before they will allow PMI to be dropped from the monthly mortgage amount. A homeowner’s equity in a home can increase from a variety of factors, such as increasing home prices, regular or expedited payments off the principle balance, remodeling and updating of a home, or construction of amenities (i.e. outbuildings, pools, garages).

PMI termination falls into two categories: borrower-initiated termination (you must take action) and automatic termination (when the bank automatically terminates your PMI because you reached the required number of payments on your mortgage.)

The exact rules for canceling PMI are largely in the hands of your lender and the company from whom your lender buys mortgage insurance. Some baseline rules about cancellation were established by the federal Homeowners Protection Act of 1998. This law, however, doesn’t offer consumers as much protection as its name would suggest, and it applies only to people who bought their homes after July 29, 1999.

At Property Tax Appeal Appraiser, we specialize in helping you rid yourself of unwanted and unnecessary private mortgage insurance.

Contact your lender to find out the appropriate PMI cancellation procedures. Lenders will often require an appraisal by a state-certified appraiser as reassurance that the 20% required equity on your house has been met. As a trusted Georgia home appraiser since 2001, Property Tax Appeal Appraiser will provide you with the service, details, and customized home appraisal reports our clients have come to expect. Give us a call today for your free consultation.