PMI is an insurance premium that is taken out by a mortgage company that protects the lender in the event of foreclosure – but don’t be fooled for this has nothing to do with protecting the borrower. When you purchased your house, your lender added mortgage insurance, also called Private Mortgage Insurance (PMI), to your monthly payment unless you made at least a 20% down payment. This payment is based on the original mortgage amount and is paid as part of your monthly mortgage payment until you have an appraisal that shows that your house has increased in value, including additions and improvements to the point that your loan is 80% of your current house value.

Equity is the difference between the value of your house and the mortgage balance (i.e., if your house is worth $100,000 and your mortgage balance is $80,000, then your equity is $20,000.)

• First step is to contact your local appraiser. The only way to eliminate your PMI is to have an appraisal that shows that your loan balance is 80% of your house’s current market value. The only way to find out if your house will appraise to that amount is to contact your local appraiser. It’s that simple!
• Second step is to send your lender a copy of the appraisal and request to have your PMI eliminated.
• Third step is to enjoy having a lower mortgage payment.

You must have a state certified/licensed appraiser in your area do the appraisal – no other professional can provide this information.

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 between $300 and $400.

The only way to find out is to call your lender’s customer service representative. However, typically the cost is $0.38 to $0.78 per $100 of your loan amount. See following examples:

Typically, it only takes a few weeks for your lender to eliminate your mortgage insurance and for you to start saving money!

As long as you have an appraisal that shows you have an 80% loan to value.

416 SE 19th Street, Ft Lauderdale, FL 33316
Telephone: 954.467.3430* Facsimile: 954.467.3705
Email: contact@providentcapital.biz


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