How to Remove Mortgage Insurance

Mortgage-InsuranceHow Can We Remove Our Private Mortgage Insurance?
Private Mortgage Insurance (or PMI, or MI) is an additional monthly fee required by most lenders when your down payment on a home or refinanced equity position is less than 20 percent. This money pays an insurance premium which protects the bank in the event the borrower defaults.

Equity can be increased a few different ways, such as paying the principal down, market appreciation and significant home improvement.

Is it time you asked yourself, “We have plenty of equity let’s stop making unnecessary monthly MI payments and start putting all of that money back into our pockets???”

Here are some ways to get rid of PMI on your existing home loan…

First off, read the MI provisions within your existing loan documents. A loan with PMI will include all pertinent information regarding the mortgage insurance and the conditions for canceling it.
You must have maintained a good repayment history on your loan. If not, the lender may take the position that you are still a risk in spite of a reasonable equity position.

In most instances you must request cancellation of MI in writing, when you can prove with an independent appraisal that you have equity of 20 percent or more.

There may be a minimum period of time which must have elapsed since the loan closed. This may vary from as little as 6 months up to as much as 5 years, depending on the investor.

What if you have an FHA insured mortgage? You must have maintained a good payment history for a minimum of 5 years and have a 78% loan to value ratio and Poof, away goes the MI.
However, in many cases the removal of MI may be “at the desecration of the finance agency (Bank)” and in the end it is a judgment made by your lender…. So let’s see, cover the banks back side or keep your money in your pocket???

How can you avoid this predicament??

SNAP! Let’s Make This Easy!!
Do you have a higher that market interest rate and the necessary income and credit to refinance? In most cases this is the easiest and fasted to cast off that dead weight of Monthly Mortgage Insurance is to simply refinance! For more information on this click on this link and fill out this short survey… this might be easier than you think!!

Pacific Funding Group - 70 Eagle Rock Way, Suite A - Brentwood, CA 94513 Office Phone: (925) 634-6700 Fax: (925) 240-6000
Pacific Funding Group - 1320 Willow pass Road, Suite 710 Concord, CA 94520 Phone: (925) 334-5723
Phone: (925) 626-4610 Fax: (925) 626-4677.
Equal Housing Opportunity Lender. Not a commitment to lend. Rates and programs are subject to change. Licensed by the Department of Business Oversight.
Brentwood, CA NMLS #385320 | Concord NMLS #930622