Did you put less than 20% down on your home? Then you likely have private mortgage insurance or PMI, and this post is for you!
In most cases, once your home reaches 20% in equity, you can get rid of PMI for good. That gives you more money to put towards your principal on your mortgage payment.
So, if you’re like most homeowners, you’ll want to get rid of your PMI as quickly as possible.
With rising real estate values, that time may come sooner than you think!
If you think your home’s value has increased enough to bump the equity in your home to 20% or more, then you can get a new appraisal through your lender and show that you have the equity in your home to eliminate the need for PMI.
You’ll want to be pretty sure that this will work out in your favor first though because you will have to pay for the appraisal fee. It’s also important to note that not all lenders will do this, so be sure to check before moving forward.
If your lender does things the old fashioned way, you can request PMI cancellation when your mortgage’s principal is 80% of the property’s original value.
Have any other questions about PMI or mortgages? Send me a DM, and let’s set up a time to chat!
#PMI #privatemortgageinsurance #coldwelldistinctiveproperties
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Kauai Alpha Fitt, REALTOR® SRES with Coldwell Banker Distinctive Properties in Grand Junction, Colorado.