Appraisal for PMI Removal
What is PMI?
PMI is the acronym for private mortgage insurance.
If you plan to purchase your home with a down payment under 20% – or already have – your mortgage carries this additional cost. Depending on the price of your home, PMI can add up to a significant amount pretty quickly.
If you have more than 20% equity in your home, you may qualify to have your PMI removed.
Fulton County Home Appraiser will provide your lender with verifiable proof of your home’s current value, so you keep more of your money.
Over 15 million Americans have been able to purchase homes because of mortgage insurance making up for the down payment difference. Homes purchased with a down payment of at least 20% have enough equity to cover any potential losses by the lender, so PMI is not required.
Under the Homeowner’s Protection Act (HPA) of 1998, you have the right to request PMI removal when you pay down your mortgage to the point that it equals 80% of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. Under the HPA, mortgage lenders must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78% of the value if you are current on your loan.
If the loan is delinquent on the date of automatic termination, the lender must terminate the coverage as soon as the loan becomes current. Most lenders require an appraisal by a state certified appraiser as proof of value in order to eliminate PMI.
Carrying PMI once it’s no longer needed decreases the money available for other household concerns. Fulton County Home Appraiser offers a specific service for homeowners that have met the 80% loan-to-value metric. For a nominal fee, we can provide you with a detailed statement of your home’s current value so you can start saving money today.