PMI or private mortgage insurance is an unfortunate cost you may have to put up with if you don’t make a down payment of 20% or more when buying a home. However, you could potentially get private mortgage insurance removed from your mortgage payments with an appraisal.
Licensed appraisal professionals like MHS Appraisal can help you calculate the value of your home as it stands today when you request PMI removal. In many cases, the loan-to-value ratio is calculated based on your home’s initial purchase price or the original home appraisal price, whichever is lower.
Unfortunately, this can result in higher mortgage payments or a rejection of your PMI removal request. But with a fair and accurate appraisal process, you can get rid of PMI based on your home’s current value.
For example, if your home’s value has risen, you may have built more equity in your property than you initially believed. That might mean you can get your PMI removed sooner rather than later. To accomplish this, you’ll want to contact real estate appraisal professionals so they can:
- Analyze the real or fair market value of your property based on “comps” or local, recent sales of similar properties
- Determine the value of your home based on its square footage, number of bedrooms, etc.
- Compile this information into an appraisal report that you can provide to your mortgage lender when requesting the removal of private mortgage insurance
The right professionals can make this process easier than ever. Contact MHS Appraisal today to learn how we can help you get your PMI removed in the near future.