Although private mortgage insurance may have allowed you to purchase your home, there will come a time when this added monthly expense will no longer directly benefit you. You are, ultimately, your own financial advisor, and even the smallest expenses should be eliminated if at all possible. By continuing to carry insurance that is no longer required or needed, you decrease the amount of money you have available in your pocket or your bank account.
PMI 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. The hardest thing for most homeowners is knowing just when their home equity rises above this 20% point. The certified, experienced real estate appraisers from Luxury Home Appraiser can help. Our appraisers know the market dynamics of your area and offer specific services to help find the value of your home and remove PMI payments. Faced with this data, the mortgage company will most often eliminate the PMI with little trouble. The savings from dropping the PMI pays for the appraisal in no time, letting the homeowner enjoy the savings.
PMI has been a large moneymaker for mortgage lenders. If your property is worth $1 million, your PMI could be as high as $1,000 a month. Most lenders require a real estate appraisal by a state-certified appraiser as the primary proof required to eliminate unnecessary PMI. 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 purchased their homes after July 29, 1999. Contact your lender to find out the appropriate cancellation procedures.
As your local luxury real estate appraiser, we work hard to provide you not only appraisal services in metro Atlanta, but information that can help you as a buyer, seller, or attorney be more knowledgeable about luxury estate appraising in and around Atlanta.
Let Luxury Home Appraiser help you remove your PMI. Contact us for your complimentary consultation.