Do you currently pay mortgage insurance, and your principal balance is less than 80% of your original purchase price? As a residential real estate appraisal firm, we have partnered with a mortgage lender to remove homeowner’s PMI for over 20 years. Join us as we walk through what PMI is and how removing it cuts down your mortgage payments.
What Is PMI?
Let’s begin by defining PMI. PMI stands for private mortgage insurance. Each month, PMI adds money to your mortgage payment. This added amount does not benefit you but directly benefits your mortgage lender. Each month you pay the premium on your conventional loan to your insurer, and a portion will go toward the balance due to your mortgage lender in case you default on a home loan. Nearly 18% of mortgages in the United States are stuck paying PMI. If you’re a part of this percentage, it’s time to remove PMI and start enjoying the freedom of having a lower mortgage payment.
Work With DVS For PMI Removal
If you want to begin your PMI removal process but are unsure of where to start, reach out to your mortgage lender. Start by requesting your PMI to be removed earlier. Then, contact DVS Appraisals to establish proof of value for your home. There are two ways that we can help you get rid of your PMI and save money.
1. Prove Current Value
One way to approach PMI removal is to prove that your mortgage balance has reached 80% of your home’s original value. Receiving an appraisal from DVS can show that your home hasn’t fallen below its original value. If you can prove a greater current value on your home, your PMI can be removed from your mortgage.
2. Prove Higher Value
In addition, an appraisal can also help determine if your home has increased in value. To remove your PMI through higher value, your home’s new value must have at least a 75% loan-to-value ratio. If your appraised value is higher, your PMI can be removed.
Lower Your Payments With PMI Removal
PMI removal can save you a significant amount of your payment every month. The sooner you contact your mortgage lender to begin the PMI removal process, the sooner you can begin saving on your mortgage. Contact DVS today help you establish proof of home value and enjoy the freedom that comes with a lower monthly payment!