How to remove pmi from mortgage

how to remove pmi from mortgage

PMI is collected monthly with your home mortgage payment at roughly 4% per $100,000 of the home loan outstanding balance. On a $250,000 loan, that's $85 per month (over $1,000 per year). Look at your mortgage statement. It should indicate how much of your monthly payment is PMI. Or, if you know you are being charged PMI, but it is not disclosed clearly on your statement, use the simple 4% formula to estimate how much you currently pay.

A home appraisal is required by your lender to process your request to have PMI removed. The cost of the typical appraisal is earned back in a typical transaction in just over four months. You'll begin saving the amount previously charged for PMI immediately once the PMI is removed by your loan servicer.


offer two ways to get an estimate if you qualify. The first method is to purchase an inexpensive automated valuation of homes in your area. This is obtained here. In areas where real estate values have been steadily increasing, you can use the manual calculation below. Enter the loan balance and your estimated market value (no commas) and hit "calculate."

Your Loan Balance:

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(Divided by)

Estimated Market Value of Your Home:

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Please note that the estimate will help you determine if you should continue and order a full appraisal (as your lender requires). The estimate calculations and a full appraisal (completed by are not guarantees that your equity and payment history meet or exceed the requirements of your lender and the Homeowners's Protection Act.


Category: Credit

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