Are you a homeowner who currently carries a mortgage on your home? If so, chances are you pay Private Mortgage Insurance, or PMI.
PMI is an insurance policy real estate lenders use to minimize their risk. It’s an insurance policy that protects the lender in the event the borrower defaults on the loan.
PMI is an important part of the mortgage lending system. Without it, few lenders would be willing to participate in the risks of real estate lending. But unfortunately, PMI can also be a tremendous burden on homeowners. That’s because PMI is different than most forms of insurance. Usually an entity buys an insurance policy in order to protect itself from risk. But in the case of PMI, the entity benefitting from the insurance is not the one who pays for it. Homeowners pay for PMI, but it’s the banks that benefit.
By law, banks are required to allow homeowners to drop their PMI once they achieve 20% equity in their home. However, the banks are under no obligation to let you know when that level of equity has been reached. And they’d be perfectly happy if you never asked!
If you’d like to eliminate costly PMI payments, here’s exactly how to do it:
1) Call your lender and find out the exact procedure and paperwork needed in order to remove your PMI payment. They’ll inform you that you’ll need a certified appraisal in order to determine the current market value of your real estate.
2) Ask your lender the exact dollar amount you’ll need your real estate to be worth in order to eliminate your PMI.
3) Call us! We’ll prepare an appraisal of the current market value of your home and certify it for your bank.
Don’t keep paying costly PMI if you don’t have to. Often, the value of your real estate has appreciated without you even knowing it, either through normal market forces or because of improvements you have made to the property. At PrivateAppraisal.com we’re standing by to provide you with the certified appraisal you need to get your PMI removed!
To reach us by phone call 718-732-6000 or email us byclicking here.
We specialize in providing Real Estate appraisals for personal, legal and tax related uses. All of our appraisers are licensed by New York State as certified Real Estate appraisers and have a minimum of 10 years of Real Estate appraisal experience. We are qualified to appraise any type of property for any reason.