PMI, or Private Mortgage Insurance, is financial protection for your lender that is typically required by larger financial institutions for home loans where down payments are less than 20%. This cost is often built into your monthly payments. Once your home equity hits 20% of your home purchase price, you may be eligible to remove PMI insurance from your mortgage altogether. While your PMI may disappear automatically in some circumstances, as detailed in this Forbes article, there are a few ways in which you can quicken this process.
With home prices on the rise the past few years, it is likely you’ve built a fair amount of equity and may have reached that 20% threshold. First, if you’ve done the calculations and believe you qualify for PMI removal, be sure to contact your loan servicer and inquire about their removal process as the requirements vary by lender. As always, feel free to reach out if you have any questions or want some additional information on your current home value.
Other options for removing your PMI quicker are to:
Pay Down Your Mortgage Faster – including making extra payments to your principal or making slightly larger monthly mortgage payments.
Get a New Appraisal – Lenders will require a new home appraisal if you believe that your equity has risen to 20%. Confirm the appraisal process with your lender.
If you have questions regarding your mortgage or PMI specifics, speak directly to your lender to make sure you know what to expect. If you have further questions regarding PMI, feel free to reach out directly to myself!
Featured Local Business| Denver
Featured this month isHulse Law Firm – Family Law & Estate Planning. The Hulse Law Firm has been operating since 2014 and are dedicated to delivering highly individualized services to people facing family law issues. Their founder, Lauren Hulse, is a Colorado native and has been practicing since 2008. If you are in need of their services, call for a free consultation at (720) 903-2647.
If you’d like your business to be featured in a future Newsletter, give me a call or email!
Local Events| Denver
Colorado Garden & Home Show, Feb. 12 – 20! Until February 20th, the Colorado Convention Center has been transformed into into the Denver-Metro area’s largest home and garden marketplace with hundreds of companies and thousands of blooming flowers. Get your tickets to the Colorado Garden & Home Show before you miss out on all the fun!
Denver Virtual Game Night: Trivia, Charades, and Drawing over Video Every Sunday at 7pm, join new friends at the Denver Virtual Game Night! Play Charades, Trivia, and Let’s Draw over the internet using just your webcam or phone! Either drop-in to a larger group or start your own trivia night with close friends. More information here!
Real estate questions? Wondering how the market looks at the moment? Just want to say hello? Don’t hesitate to call me – I’d love to chat! Don’t forget to follow me on social media – click on the links below!
