Still Paying PMI? Great News!
As a homeowner, one of the most significant expenses you may face is the monthly PMI payment. If you borrowed more than 80% of your home’s value for your mortgage, you likely have been paying PMI to your mortgage company. This adds up to thousands of dollars each year, and it can be frustrating to see that much money going to waste.
The Problem with Monthly PMI Payments
Paying PMI can be a significant burden on your monthly budget. It can make it difficult to save money or invest in other areas of your life. Additionally, it feels like you’re throwing money away without getting any real benefit in return.
The Mortgage Company
Many homeowners are not aware that market appreciation accelerates the date they qualify for PMI removal.
According to investopedia “You typically need to pay PMI until you have built up 20% equity in your home. PMI should end automatically when you have 22% equity in your home. In some cases, you can stop paying PMI at the midpoint of the mortgage, regardless of the equity amount.”
Our clients told us how frustrating it was to discover that their home qualified for PMI removal but their lender did not tell them. It can be frustrating to discover that you have been paying significant and unnecessary costs each month.
In reality, it is up to you to initiate the PMI Removal Request. This is where a knowledgeable appraisal company can help you work to remove PMI from your mortgage payments.
A Dirty Secret
It’s important to know that many lenders take the cheap route and order Automated Value Models (AVMs) that cost between $75-$150. These models are completely AI generated, are weak, unreliable and rarely accurate, and the Lender’s PMI removal decision is often based on this unreliable value opinion.
The reason lenders do this is that it’s much less expensive than ordering a full appraisal, which costs $750 or more. While some lenders will not initially accept an independent appraisal that you have purchased, the strategic advantage of starting by first ordering your own independent appraisal is that you will know for certain if you qualify for PMI removal or not. When the AVM returns a lower value that disqualifies you, you have the ammunition necessary to prove it wrong and win your PMI removal. Don’t let a cheap AVM stand in the way of removing PMI from your monthly mortgage payments.
The Appraiser
The key to removing PMI from your monthly mortgage payments is to work with a quality appraisal company. An experienced appraiser will have the knowledge and expertise to perform a successful PMI removal appraisal that complies with your lender’s appraisal requirements. This process involves assessing the current value of your home and demonstrating to your mortgage company that you have reached the 80% (in some cases 78%) loan-to-value threshold required to cancel PMI.
PMI Removal Appraisals, A Simple 3-Step Process
At our company, we make the PMI removal process as easy and stress-free as possible. Our simple 3-step process involves:
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Proposal: We provide you with a detailed proposal outlining the appraisal process and the costs involved.
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Inspection: Our experienced appraisers will perform a thorough inspection of your property and assess its current market value.
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Delivery: We deliver a comprehensive appraisal report that you can provide to your mortgage company to demonstrate that you have reached the 80% loan-to-value threshold required to cancel PMI.
Improving Your Quality of Life
Removing PMI from your monthly mortgage payments can free up significant amounts of money in your budget. This can provide you with more financial flexibility and allow you to invest in other areas of your life. By working with our appraisal company, you can take advantage of the current market conditions and remove PMI from your monthly expenses.
If you’re located in Eastern MA contact us today at 617-517-3711 or info@aladdinappraisal.com
Follow this link to learn more about our PMI removal appraisal services.
LINK
Our PMI Page
https://www.aladdinappraisal.com/services/pmi-removal/
Investopedia