Buying A House And Private Mortgage Insurance
by Joe Tran from Sterling
Ask Kate about Buying A House And Private Mortgage Insurance: Last time buying a house, I took a 100% mortgage loan with a major mortgage lender. Because I did not have a downpayment, I had to pay for PMI.
Tip: PMI stands for private mortgage insurance
Recently, I paid down my mortgage to 80% of my original loan. Now I want to remove the PMI against my original loan amount.
But they want to appraise my house value at my own expense before they remove my monthly PMI. I don't have $500.00 for the appraisal so how can I remove monthly PMI from my mortgage loan?
Can you tell me what can I do to resolve this problem? I have called them but they won't remove it. Thank you very much, JT
Kate Answers: Buying A House And Private Mortgage Insurance
Hi JT, Depending on the year you originated your mortgage and the type of program, there may be more to removing the private mortgage insurance than paying down your mortgage to 80% of the original value.
For example, your payment history could be a consideration. Another consideration might be whether or not your property has declined in value.
So get out your original paperwork related to buying a house and read the terms of the private mortgage insurance contract you signed. If after reading it, you still feel you are entitled to removal of private mortgage insurance without an appraisal, call your home loan institution and ask where you can send your request in writing.
I hope you'll come back to my website again in the future. Of course, all of my information is free.
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