Lower Your Monthly Mortgage Payment by Removing PMI
PMI. What is it and how do you remove it from your monthly payment?
Look at your current mortgage statement. Does is show PMI or Private Mortgage Insurance on it? If so, you might be able to drop that off and save that money every month.
Lenders charge PMI if you put less than 20% down on your mortgage. However, as you continue to pay your mortgage each month, your balance is going down and you will eventually have 20% invested in your home. Once you have reached that, you can ask your lender to remove the PMI payment. (Depending on your loan type and terms, this may or may not be an option.)
Now, this is where it gets fun. Because of the sudden rise in home prices, you may have 20% invested in your home already simply because the value of your home has risen significantly. So, go pull out those mortgage statement and see if you are paying PMI. Then, let us know if you were able to remove it and save money each month!
Questions?
Let us know! We are happy to share all the knowledge we have and if you still have questions, we will connect you with a local mortgage expert that we know and trust.