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What is PMI Insurance?
Private Mortgage Insurance or PMI as it is more commonly known,
is a mandatory insurance policy that is added to some borrowers monthly mortgage payments.
This policy is in the event that the borrowers were to default on the loan.
This protects the investors and or mortgage lenders on their investment
so that the remainder on the mortgage note would be covered and the loan would be paid in full.
This is not to say however, that the borrower will be forgiven for defaulting.
Who Is Required To Have PMI Insurance?
Most new homeowners have to pay this added monthly cost. This is because any borrower who puts less that 20% down.
In some cases more (check your loan documents) on their home when they purchased it or any borrower who has less that 20% equity in their home
probably is still paying the private mortgage insurance policy.
How Would This Affect Me?
Few homeowners realize over the years, that as they pay down their mortgage, generally appreciation in the property increases.
Then the two in concert together create a larger equity jump than someone may anticipate.
With this being the case, many homeowners will pay this premium well beyond the time frame needed.
This leads to an unnecessary monthly expense that is expensive and unwarranted.
How Do I Find Out Whether Or Not I Have PMI Insurance?
Your monthly statement should indicate your payment. If not,
you need to contact your lender to see whether or not your PMI payment may be hidden in the escrow account of your loan.
(From personal experiences in the real estate industry,
I have found that beating down your door to tell you, it's possible you may have excess of 20% equity in your home.
And by the way we would like to remove your policy payment, although steps have been taken to try to change this in our Government).
How Can I Remove PMI Insurance?
A lender will take many factors into consideration. Some of these will include the borrowers past payment history on their loan.
This factor alone (in some few cases) may deter a borrower from being granted the request to drop PMI Insurance.
It is best to check with your lender first before going any further if there may be any concerns.
The lender has been given suggested guidelines for PMI removal from the lending bodies.
They generally like to see at least 2 years of ownership with 20% minimum equity or less that 2 years ownership 25% minimum equity.
This information should be obtained directly from the lender when inquiring about the possibility of having PMI Insurance dropped from a mortgage payment.
In most States the lender will require the borrower to attain the services of a State Certified or Licensed real estate appraiser
to perform an appraisal of their property on Form 1004.
After the appraisal is completed the borrower then delivers the appraisal to his/her lender for review.
After review of the appraisal and the borrowers past credit history the lender then contacts the borrower with their findings.
Removal of the PMI Insurance premium from the mortgage payment will reduce the borrowers monthly payment-sometimes dramatically.
What if I'm Not Sure I have at Least 20% Equity in My Home?
We here at Clark appraising & consulting, LLC can help You determine the right course of action to be taken.
With information You supply us, we can consult You over the phone as to whether or not it would be advisable to have a full appraisal done on Your property.
Our initial consultation is free as our help to determine your correct path is what we call a phased analysis and is a service we provide at no cost to you.
What Next?
To order an appraisal or to find out if You have enough equity in Your property ( click here )
please fill out as much information as possible on our order page and click the "SUBMIT ORDER" button at the bottom of the form.
We will be in contact with You shortly to confirm the order and to get any additional information that may be needed.
If you do not hear back from us within 24 hours, please call us-as we never know if we are experiencing Internet congestion until it is too late.
The only fees required would be for a full appraisal or consultation of Your property if after consultation it were deemed warranted.
If after consultation You feel You want to proceed with the process of removing
Your PMI Insurance premium from Your mortgage payment we offer Quick Turnaround and Quality Services that any client would appreciate.
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