What is PMI and how do I get rid of it?!

I’m so happy that the days are longer and the weather is getting warmer. The spring market is heating up, and I’ve already put 6 people under contract this month for new homes. Interest rates are still hovering around the same 7%, but if you’re looking to invest or move to the city, home prices are still relatively low.

On June 18th, my partners and I are going to be hosting a lunch and learn. I will be sending out more information soon but we are going to be discussing how you can save money now (see PMI info below for example) and build long term wealth in the future with real estate. Let me know if there is something you’d like to learn about. Take a look at all the info below but please read this whole email (or just skip to the bottom, ha) because I’m giving away FREE PHILLIES TICKETS to anyone that wants to go!

What is PMI?

Private Mortgage Insurance (PMI) is required by your lender if you buy a property and finance more than 80% of the purchase price (less than a 20% down payment.) PMI is insuring your Mortgage Lender (NOT YOU) against default on your part. Most times you pay for your PMI as part of your monthly mortgage payment. FHA and VA loans have a different type of mortgage insurance, so it is important to speak with your lender about the differences.

How can I get rid of my PMI?

If you have a mortgage that includes Private Mortgage Insurance and have purchased within the last 5 years, you may have enough equity to have your Private Mortgage Insurance removed/canceled from your mortgage, which means you could potentially save hundreds of dollars monthly.

It is never guaranteed that a Mortgage Lender will allow the cancellation of PMI, but you should contact your mortgage company to ask what the process is for PMI cancellation and it does not always require the mortgage to be refinanced.

Most people’s properties have risen in value over the last few years! This is amazing news for you if you don’t want to change your rate but want to get rid of that looming PMI. I encourage you to reach out to me to do Comparable Market Analysis (comps) on your home. This is not a guaranteed number, but it will give you a pretty good idea what your house may be worth. I am happy to do this for you at absolutely no cost to you! Please contact me and I can tell you more about how you can save money on your loan for little or no cost!