One of lenders’ best kept secrets is that homeowners don’t have to pay PMI forever. Although legislation has been enacted to require lenders to disclose PMI information, they are not required to inform you when you are eligible to stop making PMI payments.  Unfortunately, most homeowners don’t know this, so they could very well qualify for PMI removal, but continue to pay for this unnecessary insurance. 

It’s common for homeowners to assume that their monthly PMI payment is required as long as they have a balance on their mortgage. However, they can actually stop making monthly PMI payments once they acquire 20% equity in their home. The 20% of equity can be accomplished by one of three scenarios listed below:

• Paydown of mortgage principal
• Home improvements
• Home appreciation

In order to accurately determine if any home improvements or home appreciations have occurred, a PMI removal appraisal must be conducted. The PMI removal appraisals will determine the home’s fair market value, based on a number of criteria, and how that value correlates to an equity percentage. If the appraisal determines that the homeowner now has 20% or more of equity, they can stop making payments and start saving money!

If you are tired of making PMI payments and would like to know your equity percentage in your home, contact us today. Our PMI removal appraisals are extremely reliable, accurate, and timely. There’s no sense in wasting more money when you don’t have to, so contact us today for a free quote on our PMI removal appraisals!