PMI Removal
Think you may be overpaying on your mortgage because of private mortgage insurance? We can help you find out if it’s time to remove your PMI.
Being a homeowner is expensive, and if you’re on this page, it’s likely you’ve discovered you may be overpaying on your mortgage payments. If you purchased your home with conventional financing and put less than 20% down, then your monthly mortgage payments included PMI. But if you’ve owned your house for a few years, it’s possible you are still paying for insurance you don’t need.
You are eligible for PMI removal once you’ve reached 20% equity in your home by appreciation, improvements made to the home, or by paying down the principal balance of the mortgage (or any combination of the three). These options allow you to force the lender to cancel the private mortgage insurance.
How To Cancel Your PMI
The Homeowner’s Protection Act requires lenders to make borrowers aware of the PMI they are paying and when it’s likely time to cancel. But, many homeowners overlook this notification. Regardless of if you have been notified yet or not, you can start the process on your own if you think it is time.
In order to see if you are eligible to cancel your PMI, start by contacting your lender and request their PMI removal requirements. Sometimes lenders will require 25% equity, other times you won’t be eligible because of your payment history. Start by finding out what your specific lender requires.
If you think you can meet their requirements, the next step will be to prove your equity. To do this, most lenders will require a state certified appraisal of your property. This is how Arizona Appraisal Advisors can help. We will assess your property, taking into account the value of your home due to appreciation and any upgrades you have made and provide you with the appraisal you need to cancel your PMI.