What is PMI insurance?
PMI insurance is an insurance premium
that is taken out by a mortgage company
that protects the lender in the event
of foreclosure. When you purchased your
house your lender added PMI to your monthly
payment unless you made at least a 20%
down payment. This payment is included
in your monthly mortgage payment until
you have an appraisal that shows your
house has increased in value, including
additions and improvements, to the point
that your loan is 80% of your current
house value.
^Top
Does PMI benefit me in any way?
No. This insurance is designed to protect
the mortgage company, not you. Once you
have achieved 20% equity in your house,
however, most mortgage companies will
release you of this payment.
^Top
How can I find out if I am paying for
PMI?
Call the lender listed on your
payment book and ask them if you are currently
paying for Private Mortgage Insurance.
^Top
How can I drop my PMI payment?
The first step is to contact us. We
will ask you a few questions to see if
your home will qualify for the removal
of the insurance. There is no charge for
this service. If we feel your home qualifies,
we will help you submit a written
request to your lender in order to initiate
the process. After your lender responds
to this request, then we will need
to set up an appraisal to make sure you
have achieved the 20% equity level required
for the removal of PMI. Once the appraisal
is completed, we will walk you through
the rest of the process, provide you
with a cover letter requesting the insurance
be removed and provide you with a
copy of the appraisal to be submitted
to your mortgage company.
^Top
How much does an appraisal cost?
We charge $275 for a conventional residential
appraisal, payable by cash or check.
^Top
Does my mortgage company have to release
me from these payments?
No. As there are many factors involved
in this decision, there is no guarantee
that your mortgage company will release
you from paying PMI. However, since you
have certain inherent legal rights which
encourage them to do so, most mortgage
companies will be glad to cooperate. We
will take all the necessary precautions
in our up front assessment to make sure
your mortgage company is willing to remove
the insurance pending the completed appraisal.
^Top
