How to Remove PMI from Mortgage

PMI stands for Private Mortgage Insurance. If you did not have 20% in down payment money you probably have private mortgage insurance. This is built into you payment and many homeowners forget that it is there and continue to pay the lender long after it is necessary. To remove the PMI from your mortgage, just follow these few important steps.

Instructions

1. Know what your house is worth! After three to five years, houses usually increase in value. Check your houses' worth at zillow.com. (See the article in the Resource section) Zillow gives you an estimate of what your house is worth and what other homes around you are worth. There are other websites that can give you an estimate of what your home or homes in your area are worth.

2. Contact your mortgage lender by phone or email. Ask them the steps to get the PMI taken off your mortgage. Each lender will have different hoops to jump through, but the process should not be hard.

3. Get an independent appraisal. Sometimes the lender will want to use a certain appraiser. Sometimes they will take your property tax evaluation. Try to get an independent appraiser to make sure you get a fair appraisal.

Tips & Warnings

• Be persistent!

• If your lender will not cooperate, look into refinancing. There is a chance you can get years off your loan and get a better rate.

• Just being aware of what PMI is and staying persistent will save you money!

• PMI is hard to avoid for first time home buyers

• Put questions about PMI and your lenders options of PMI on your list to ask your lender.

• Shop for PMI options as you would a mortgage!

Resources

• http://www.ehow.com/how_2101195_research-neighborhoods.html
• http://www.ehow.com/how_4482190_estimate-value-real-estate.html
• http://www.ehow.com/how_2299237_save-home-foreclosure.html