If you live in near Phoenix, AZ and want to remove or cancel Private Mortgage Insurance (PMI), contact us today for a complimentary equity update to see if you qualify.

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by @godseycreative

Video Transcript:

How to get rid of, remove, or cancel Private Mortgage Insurace (PMI).

Here’s the answer to the question of the month: how can I remove mortgage insurance?

Private Mortgage Insurance, also known as PMI, is typically required if you put less than 20 percent down when buying a home with a conventional loan. It’s additional monthly fee that typically ranges between 0.46 percent to 1.5 percent of the loan amount.

PMI is actually a good thing because it allows buyers to purchase homes sooner with less money down. But removing PMI can put a hundred to 200 dollars or more back in your pocket each month, which can be useful around the holidays.

So here are a couple ways to remove PMI.

First, you can request cancellation once you have 20% equity in your home. This must be in writing and may require an appraisal by the lender. The lender may also require a list of significant upgrades made to the home since you purchased it.

The second way to cancel PMI is just to wait until it falls off automatically. But this typically doesn’t happen until you're past the midpoint of your loan term or when your LoantoValue ratio reaches 78%, meaning you have 22% equity in your home.

Most lenders require you to own your home for at least two years before removing PMI, and you need to have maintained good payment history. Each lender or loan service provider may have slightly different requirements to remove PMI, so be sure to read their PMI cancellation policies for more details.

If you think you may be eligible to remove PMI, contact us today for a complimentary equity update to confirm that you qualify.

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