What is private mortgage insurance (PMI)? Essentially, PMI makes up the difference between your loan amount and an 80% loan-to-value ratio. Lenders require you to have it once you go beyond this percentage. If you want to cancel your PMI, you can refinance once you have the required equity. However, this is not the ideal move in today’s market since interest rates have increased.
How else can you remove your PMI? I recently looked at a client’s online mortgage account with them, and attached to it was a link that led to a page that gave a broker price opinion on your home so you can easily check if your property has enough value to remove the PMI. We followed the link and answered the required questions. This saved the client about $100 monthly, and they didn’t need to refinance to cancel the PMI.
If you are in a situation where your home has increased in value, contact your mortgage company and inquire how you can remove your PMI. For more details on this topic, don’t hesitate to call or email me. I’ll be happy to help!