What is Private Mortgage Insurance (PMI)?
If you put less than 20% down towards the purchase of your home, you can safely assume that you are currently paying for a Private Mortgage Insurance (PMI). This additional premium is being paid by you with every payment to insure the lender in case you default on your loan. If you have paid your mortgage down or if your property has appreciated enough, you could have this insurance premium removed. Even if you buy your house considerably below the appraised value, you typically need 1-year seasoning on your loan. Some mortgage companies require at least 2 years. After this waiting period you can make the request. Call your mortgage company customer service and ask for full instructions for the PMI removal. Most mortgage companies want to know that you have at least 20% equity in the property. In order to determine the value most mortgage companies will require a fee based appraisal from a State Licensed or Certified Appraiser.