PMI stands for Private Mortgage Insurance
PMI is a form of insurance that private lenders tend to place to reduce the risk of loss for those with lower down payments on mortgages when purchasing. PMI is usually required for mortgages over 80% of the home value.
Example: 5% down payment on a property will generally require PMI.
One way to remove PMI is by paying down your mortgage. Although great in theory, it is not always possible.
Another option is by obtaining an appraisal by a licensed residential appraiser to show mortgage value is under 80% of the home's value.
Contact your mortgage lender and ask for the requirements needed to have the PMI removed. All lenders have specifications. The majority of lenders will want the request in writing.
Please note, having your mortgage in good standing will most likely be requirement from your lender. Additionally, they may ask you to verify that there are currently no liens or additional mortgages on the property.
Once you have requested information from your lender and feel that you qualify for PMI removal - Contact Us!