Private Mortgage Insurance (PMI)

If you have purchased your home with less than 20% cash down payment, you could have a monthly private mortgage insurance payment.

This payment is the difference of your mortgage versus your down payment. For example, if you invested 5% cash down on your home purchase, your monthly payment is based on: 100% - 5% = 95% mortgage.

Typical mortgage underwriting (FNMA, FHLMC, FHA) guarantees 80%.

A private mortgage insurance company guarantees the difference of 95% - 80% = 15%.

This is a private mortgage payment for insuring the difference of your down payment and your underwritten mortgage.

If you have upgraded your home and have enjoyed market appreciation since your purchase, your equity may be greater than 20%, thereby relieving the monthly PMI payment.

You should find out!!!

The easy steps:

1. Contact your mortgage company and inquire if you are paying a private mortgage insurance fee (PMI), and how much this fee costs you.

2. If so, request a letter from your lender explaining how to eliminate this payment. Typically, you must have at least 20% equity, have current payment history for 12 months and you must submit a current appraisal on your home. This letter will be specific of your requirements, the homeowner, to relieve this payment fee. This letter will also inform you were to submit your relief request along with your appraisal.

3. If you qualify to relieve your PMI, contact us for your appraisal.

4. We will process your PMI relief appraisal in a step procedure, from analyzing the feasibility, to the property inspection to final appraisal; thereby attempting to provide you with a meaningful appraisal.

5. Most lenders require the "Uniform Residential Appraisal Report" form (FNMA 1004; FHLMC 70) for this type of appraisal.

Contact us for more information of with any question!

"Progress in appraising through cooperative action"