Eliminating Private Mortgage Insurance
If you are just starting your home search and have met with a lender you probably have been informed about private mortgage insurance.
For those who are not familiar with the term, private mortgage insurance or PMI for short is required by lenders when a borrower is putting down less than 20 percent. Obviously there are quite a few first time buyers who will be paying PMI on their loan.
On a percentage basis there are far fewer buyers who will be coming up with a 20 percent or more down payment when purchasing a home.
This insurance frankly is useless to a buyer. Quite honestly this fee is protection for lender in the event of a mortgage default and does nothing for the borrower. Paying this insurance fee is like throwing money out the window.
For this reason many people will want to how to get rid of private mortgage insurance as soon as possible. In the article you will see some of the best tips on what you can do to get rid of your PMI payments.
Does that sound interesting? It should because private mortgage insurance can take hundreds of dollars out of your pocket every month! These funds could be used for a million other things - I am quite sure of that.
There are a number of ways you can get your private mortgage insurance eliminated as soon as possible. The easiest way is just asking the lender to remove it.
If you know your equity has increased substantially from when you acquired your loan, getting a current value should be a top priority. This is something the lender will probably require anyway.
Without too much trouble you can probably ask a trustworthy real estate agent to come by your home and do an analysis of value. Whoever sold you the home should be more than happy to do this for you. Real Estate agents love the opportunity to stay in touch with former clients. This is one way a re-connection can be made.
Be sure to read the article linked here to find out all of the other ways to get rid of your PMI as soon as you possibly can!