Real Estate Analysis and Commentary in New Jersey

Are You Paying For Private Mortgage Insurance Unnecessarily
January 25th, 2023 4:35 AM

We can help you eliminate PMI!

PMI, also known as Private Mortgage Insurance, is a supplemental insurance policy you may pay for to protect your mortgage lender in the event of your default. PMI is provided by private (non-government) companies and is usually required when your loan-to-value ratio - the amount of your mortgage loan divided by the value of your home - is greater than 80%. PMI isn't a bad thing - it allows lenders to accept lower down payments on homes than they would normally be comfortable with. But you may be paying it unnecessarily!

How can you eliminate your PMI insurance?

You have the right to cancel PMI (for loans made after July 1999) once your equity reaches 20%, irrespective of the original purchase price.

When you think you've reached 20% equity in your home, you can begin the process of freeing yourself from PMI payments! You will need to notify your mortgage lender that you want to cancel PMI payments and you'll need to submit proof that you have at least 20% equity. A state certified appraisal on the appropriate form (URAR; uniform residential appraisal report for single family homes) is the best proof there is - and most lenders require one before they'll cancel PMI.

Don't delay! If you can avoid paying hundreds of dollars a year to insure someone else's risk, it's worth starting right away.

Tight And Right Real Estate Valuation
Cardwell Thaxton, New Jersey
(908) 456-1593

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