Here is how you can stop paying that costly PMI premium
A few mortgage insurance (PMI) facts:
Over 50% of all mortgage loans have mortgage insurance premiums. In 1998 a PMI Bill was passed that requires all lenders to automatically allow you to drop your PMI premium once you have 20% equity in your home. To drop your PMI premium all you need is an appraisal that is prepared by a state certified appraiser.
What will I save?
Contact your lender for the specific amount. PMI rates typically very between $0.35 - $0.80 per $100 (based upon your loan amount). The table below has several examples. All costs are monthly.
|Monthly PMI Cost
|Original Loan Amount
What do I need to do to drop my mortgage insurance?
1. Contact your lender. Verify that you are paying mortgage insurance. Confirm that you qualify for PMI removal. 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 appraiser.
2. Contact a Verappraise.com appraiser. Verify that they meet your lenders experience and certification/licensing requirements.
3. Send the report to your lender and enjoy your lower house payment.