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PMI - What is it?
Private Mortgage Insurance - it is an insurance policy that protects the lender in case a borrower defaults on the loan, and the value of the house is lower than the loan balance.
PMI - How did I get it?
You put less than 20% down on your house when you purchased it.
PMI - Who pays for it?
You do. Every month, as part of your mortgage payment.
PMI - How much is it costing me?
Apprxoimately $40-$50 per month per $100,000.
PMI - Who benefits from it?
The lender.
PMI - How do I get rid of it?
You turn in an appraisal performed by a Certified Appraiser that verifies your home's value is at or below 80% of the loan along with a request to remove the PMI.
For more information on PMI and the Homeowners Protection Act, try one of these links:
Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year
Private Mortgage Insurance (PMI): Law Requires Lenders to Cancel PMI
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