How to remove PMI from your mortgage.

#hoffmangrouprealty #mortgage #PMI #privatemortgageinsurance
#realestate #realtor
If you aren’t familiar with PMI, it’s private mortgage insurance. It comes with several types of loans, including conventional. PMI is you insuring your mortgage for your lender in case you default, so it benefits you in no way whatsoever. The sooner you get rid of it, the more you save.
Depending on your loan type, the lender is required to remove your PMI when your mortgage balance is 78% of the original purchase price, or when the LTV is at 80% and you request it the PMI to be removed. Contact your lender for their requirements but you have several options. In a market where prices have appreciated like we’ve seen the last few years, you can have a new appraisal or BPO to have your home value adjusted to replace the original purchase price valuation. The 3 most common ways to get of your PMI early are as follows:
1-Pay the loan down by making an extra payment towards principal owed. Not practical for most people.
3-Notify your lender you’d like the PMI removed and they’ll send provide a list of approved vendors to order an appraisal or BPO for a new valuation. If it comes in so your loan balance is now 80% or less of the value, your PMI will be removed early.
I did option #3 during the last runup, and it’s saved me $6000 in mortgage payments! How much can you save? I’d love to hear from you if you need an idea of your home value, you’re interested in selling, or just have questions! Brandon Hoffman, 803-528-3336

[bryantstaxlogistics]

Thank you. I just obtained a FHA mortgage with PMI, I heard I wasn't able to get rid of it but I know there was a way. Thanks for the information.