PMI

You are probably paying an extra $40 - $150 per month in Mortgage Insurance that was set up when you first bought your house. You may also have PMI if you have refinanced and the new loan exceeds 80% of the value of your home. If that’s the case you are paying for insurance that protects the lender only, not you.

The Homeowners Protection Act of 1998 says that if your loan was closed after July 29th 1999 and you have at least 20% equity in your home then you are eligible to have PMI dropped! To learn more click here: http://www.hud.gov/offices/hsg/sfh/res/respapmi.cfm

How do I know if I am paying PMI?
First look at your monthly statement. Some statements break down the various amounts, such as principal, interest, taxes, homeowners insurance and PMI. However, it may be possible that the PMI portion of your payment is labeled “escrow payment”. That is your escrow account set up to accumulate PMI, property taxes and structure insurance so that the lender can make periodic payments of these costs as they become due. If your escrow amount does not show a breakdown then contact your lender and ask them if this amount includes PMI and how much the monthly breakdown is.

How do I drop my mortgage insurance?
The first step is to contact your local appraiser. The only way to drop your PMI is to have an appraisal that shows that your loan balance is 80% or less of your home's current market value. You are allowed to include increases in property values, improvements, additions, swimming pools, etc.!!! If you are not sure if you have at least 20% equity please contact us for a fast, no obligation phone analysis. The second step is to send your lender a copy of the appraisal and request to have your PMI dropped. The third step is to enjoy having a lower mortgage payment!

Who can do the appraisal?
You must have a state licensed or certified appraiser like Valu-Rite do the appraisal -- no other professional can provide this information.

What is the cost of an appraisal?
Not much compared to the savings you can soon realize!!! Appraisal costs can vary in different areas and with special houses. However, typically a residential appraisal will only cost $350-$400 for a Single Familiy Residence.

How do I order an appraisal with Valu-Rite?
Simply click HERE to get started!