Unleash Your Home’s Equity – Eliminate Unnecessary PMI

Private mortgage insurance (PMI) allows individuals to purchase their homes with less than a 20% down payment. If you’re paying PMI, the question you need to ask is, “Is it time to stop paying monthly PMI into an escrow account and start putting that money back in your pocket?”

Understanding the Burden of PMI

Each month, you dutifully make your mortgage payment, but have you ever wondered what exactly makes up that payment? In addition to paying off your mortgage loan, a portion goes into an escrow account to cover real estate taxes and various insurance types, including homeowners, hazard, flood, and PMI.

When PMI Is Necessary

If you purchased your home with conventional financing and put less than 20% down, it’s likely you’re paying PMI. PMI protects the lender against loss if a borrower stops making payments. However, homeowners often end up paying PMI years after it’s no longer needed, resulting in thousands of dollars wasted in premiums.

Unlocking the Path to PMI Removal

The good news is that, as a homeowner, once you’ve reached 20% equity in your home through appreciation, improvements, or principal balance payments, you can request the lender to cancel PMI. All you need to do is provide the lender with a state-certified appraisal as proof of sufficient equity exceeding 20%.

A Surge in Mortgage Insurance

PMI is typically required when a homeowner puts down less than 20% on a home purchase. It has grown in popularity as it enables millions of Americans to buy homes with smaller down payments.

The Lender’s Decision on PMI

The lender, or the entity that eventually purchases your mortgage loan, makes the ultimate decision on PMI. They decide how much equity is necessary for PMI removal. Homeowners must stay in contact with their loan servicer to inquire about PMI and its requirements for cancellation.

Steps to Cancel PMI

To initiate PMI cancellation, contact your loan servicer (the institution to which you send your mortgage payments). They’ll guide you through the process and provide information on your remaining mortgage balance. Different servicers may have varying policies for cancellation, so request written requirements from your servicing lender.

Your Role as Your Financial Advisor

Ultimately, you are your own financial advisor. Eliminating even the smallest expenses is crucial to maximize your savings. Continuing to pay unnecessary PMI eats into your available funds.

Expert PMI Removal Appraisals

Most lenders require a real estate appraisal by a state-certified appraiser as the primary proof for eliminating unnecessary PMI insurance. At Everest House Valuation Services, we specialize in helping homeowners remove unwanted and unneeded PMI. Don’t let PMI needlessly drain your finances. Contact us today for a PMI removal appraisal.

We offer a free initial consultation and will help you to determine if you have sufficient equity in your home to enable you to cancel your PMI.

Give us a call today with any questions you might have to get your free quote at 612-968-0518, or fill out our free quote request form.