Banyan Appraisals, Inc.

 

Private Mortgage Insurance or PMI is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan - whether through market appreciation or principal pay-down - dips below this 80% level.

If PMI or Mortgage Insurance was required at the time of your loan, your property may qualify to have the PMI removed.  In 1998 Congress passed the Home Owners protection act. This law effects all loans originated after July, 1999 and requires lenders to terminated the PMI when the principle balance of the loan reaches 78 percent of the original loan amount.  It also stipulates that the lender must remove the PMI upon the request of the borrower when the principle amount is at or below 80 percent of the homes value.

 

Buyers that purchased prior to July, 1999 can still have their PMI removed, but they must initiate the process and the lender is not required to remove the PMI.  While the lender is not obligated to remove the PMI, most lenders will remove the extra fees provided the borrower is current on the loan and does not represent an exceptional risk.

As a Certified Appraiser we can help determine if your property’s principle has reached the 80 percent requirement and even help begin the process of removing the PMI payment.  The savings a homeowner can realize  will pay for the appraisal in a matter of months.

 

 

To contact us:

Phone: 561-422-8132

Fax: 561-422-8951

Orders@BanyanAppraisals.com