Skyline Appraisal Services LTD - Eliminate PMI

Eliminate Your Private Mortgage Insurance (P.M.I.) Payments

What is private mortgage insurance?

Private mortgage insurance is a type of insurance provided by a private mortgage insurance company to protect a lender in the event of default on a loan. This type of insurance is generally required by the lender when a borrower has less than 20% equity in their home.

Who pays for private mortgage insurance?

The borrower pays for private mortgage insurance on a monthly basis in addition to the principle and interest payments that are made on a loan. The lender then transfers these premium payments to the mortgage insurance company.

Once my loan to value ratio drops below 80%, can the P.M.I. be removed?

Yes. Lenders will allow borrowers to remove the P.M.I. requirement once the property’s appraised value increases such that the loan to value ratio is below 80%.  Usually the lender (mortgage holder) will require a certified appraiser to appraise the property to determine its current market value.

What do I need to do to remove my P.M.I.?

Lenders will not contact you to remove your P.M.I. and most would be happy to let you pay it for the duration of your loan.  P.M.I. is a large money-maker for mortgage lenders as it eliminates their risk.  Many homeowners continue to pay the P.M.I. even after their loan balance drops naturally by paying down the principle over time.  Improving market conditions combined with any capital improvements you might have made can greatly reduce the time it takes for you to reach your threshold.  Our office specializes in assisting homeowners in the removal of P.M.I. and we eliminate the need for you to contact a mortgage broker (and possible mortgage broker fees).  Contact your current mortgage holder directly to determine their policy on removing mortgage insurance from an existing loan.

What does it cost to remove the P.M.I.?

A phone call to our office (or filling out the online order form) after contacting your lending institution is all you need to do.  Your lending institution will inform you of the estimated value needed in order to eliminate your P.M.I.  We will then provide you with a Real Estate Appraisal certified to your current lending institution.  In most cases, the appraisal fee is all you pay (the appraisal fee depends on the type of property you own – not the value).

Robert Virsinger, CSA-R – Certified Appraiser #45000017123