Paying PMI Insurance!
Insurance (PMI) is a monthly charge you incur if your down
payment from your home is less than 20% of the appraised value
or sales price. By getting PMI you will be able to have a lower
down payment because the bank is protected against you losing
Rates of PMI vary depending on any number of factors, but lets
do some basic math:
Lets say that the average median home in America costs $200,000.
To put down 20% would require a down payment of $40,000. That's
a lot of MONEY!
So lets say then that you can only put down $20,000 which is 10%
of your loan. The bank then takes that $180,000 and multiplies
it by .005%. That means annually you are paying $900 or $75
Banks are by law required to notify a consumer when they have
reached 20% equity in their home, but you need to keep track of
these numbers. Once you have reached 20% you can get an
appraisal and waive this monthly fee. Your return on an
investment to get an appraisal could be less than 2 months!
of all mortgage loans have mortgage insurance (PMI).
1998 federal law requires lenders to allow you to drop
your PMI once you have 20% equity in your home.
your private mortgage insurance you may need an appraisal by
a state certified appraiser. Any improvements you have
made since purchasing your home will be reflected in the
Sound Appraisal, Inc.
can save you money. We have
prepared over 5,000 appraisal reports in the Puget Sound Region and
the surrounding suburbs. We may be able to help you reduce your
mortgage payment. Call us!
are not located within the Puget Sound area we can refer you to an appraiser
is the cost of an appraisal?
fees fluctuate in different areas. A typical residential
appraisal will cost $300 - $500. Visit our
much can I save?
your lender for the specific amount. PMI rates typically vary
between $0.35 - $0.80 per $100 (based upon your loan amount).
The table below has several examples.
These are monthly costs
do I need to do to drop my mortgage insurance?
Contact your lender. Verify that you are paying mortgage
insurance. Confirm that you qualify for PMI removal. Get their
specific requirements for exactly what you need and where to
send the information. Most will require an appraisal by a state
Contact an appraiser. Verify that they are state certified.
Send the report to your lender and enjoy your lower house