Here’s what you should know about removing private mortgage insurance.
Do you have private mortgage insurance (PMI)? It’s necessary for some loans, but your monthly payment will be lower if you can remove it. Fortunately, you can remove PMI, and I’ll tell you a few ways how.
First, do you have an FHA loan or a conventional loan? If you have an FHA loan, the only way to remove PMI is by refinancing. This change is fairly recent; before 2018, your PMI would disappear after five years into an FHA loan. However, since then, you must refinance to remove it.
If you have a conventional loan, there’s a better option. All you have to do is get an appraisal. Paying an appraiser to come to your property will only cost $150 or $200, so it’s well worth the money. Some lenders will tell you that you must refinance, but this isn’t always the case.
If you have questions about this topic or anything else, please call or email me. I am always willing to help!