As a homeowner, you’re probably well aware of the various expenses that come with owning a property.
You’ve got your mortgage payment, property taxes, and insurance premiums.
But there’s another cost that many homeowners overlook or simply don’t know about – Private Mortgage Insurance (PMI).
If you’re one of the many homeowners paying PMI every month, it’s time to explore the value and importance of getting a residential home appraisal for PMI removal.
What is PMI and Why Should You Care?
Private Mortgage Insurance (PMI) is an additional insurance policy that lenders require from homeowners who put down less than 20% on their mortgage.
While PMI protects lenders in case a borrower defaults, it can be a significant monthly expense for homeowners.
As you continue paying down your mortgage and your home’s value increases, PMI may no longer be necessary.
By obtaining a residential home appraisal and presenting it to your lender, you can potentially remove PMI and save money each month.
The Power of a Residential Home Appraisal
A residential home appraisal is an unbiased, objective and professional assessment of your home’s market value.
Appraisers consider factors such as location, size, age, condition, and recent sales of comparable properties in the area.
By getting a home appraisal, you can determine if your home’s value has increased enough to meet the threshold for PMI removal.
PMI Removal: More Than Just a Financial Decision
Eliminating PMI isn’t only about the financial savings. It’s also about gaining peace of mind and control over your finances.
Removing PMI can:
Boost your monthly cash flow: With PMI gone, you’ll have more money in your pocket each month.
You can use this extra cash to invest, save, or spend on other things that matter to you.
Increase your home equity faster: Without the burden of PMI, you can allocate more of your monthly payment towards the principal, thereby building equity more quickly.
Improve your debt-to-income ratio: Lenders take your debt-to-income ratio into account when determining your eligibility for loans or refinancing.
Removing PMI can improve your ratio, opening up new financial opportunities.
Enhance your sense of ownership: When you’re no longer paying PMI, it can feel like you truly own your home. This sense of accomplishment is invaluable.
How to Get Started with PMI Removal
Ready to remove PMI from your mortgage? Follow these steps to get started:
Review your mortgage statement: First, check if you’re still paying PMI.
You might have already reached the threshold for automatic PMI removal without realizing it.
Contact your lender:
Talk to your lender about their requirements for PMI removal. Typically, lenders require an appraisal to confirm that your home’s value has increased enough to justify removing PMI.
Confirm, in writing, if your lender will accept a private appraisal for PMI removal. Some do, some don’t.
Hire a certified appraiser: In short, give us a call: 419-754-3396
Submit your appraisal report: Once you’ve received your home appraisal, submit it to your lender.
If the appraisal supports the removal of PMI, your lender should remove it from your mortgage payments.
Monitor your mortgage statement: Keep an eye on your mortgage statement to ensure that PMI has been removed. If not, follow up with your lender.
Reap the Rewards of PMI Removal
Investing in a residential home appraisal for PMI removal can be a game changer for homeowners like you.
By taking control of your financial future and eliminating the unnecessary expense of PMI, you’ll enjoy increased cash flow, accelerated equity growth, and an improved debt-to-income ratio.
Not to mention, the sense of accomplishment and ownership that comes with no longer paying for PMI.
Don’t let PMI continue to drain your hard-earned money. Seize the opportunity to unlock your home’s true value and enjoy the benefits of PMI removal.
Be sure to consult with your lender to determine if pursuing a residential home appraisal for PMI removal is the right decision for you.
Click here to see how we can help with your pmi removal appraisal needs.