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| Can I
get rid of the PMI on my loan? |
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Can I get rid of the PMI on my loan?
PMI stands for Private Mortgage Insurance. PMI is normally
required when you purchase a house with less than a
20% down payment. This insurance is to protect the lender.
Do not confuse PMI with insurance for you, it is for
the lender. PMI provides the comfort level lenders require
to compensate for less down payment money.
The decision to cancel PMI is solely up to the lender.
Generally speaking when a 20% equity position occurs
in the property, PMI will be dropped. You have to ask
for this, most won’t drop it until the loan amount
is dropped by 20%. A perfect, on time payment history
is required for consideration.
To cancel PMI contact your lender. An appraisal will
usually be required, ask the lender who they recommend
and go with one of their recommendations. Plan on paying
for the appraisal at the time the appraiser is at your
home. Another way to cancel PMI is to refinance and
get a new loan without PMI.
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At Garrett Mortgage
Inc., we offer many home loan mortgage programs. Together
with the assistance of an experienced, "live"
loan officer to guide you through the often difficult
and confusing process of choosing and getting the
exact home loan mortgage to meet your specific needs. |
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Helpful Links
Office
770.956.8562