If you put less than 20% down on your home purchase, you are paying private mortgage insurance. However, there is a way to get rid of it.
I’ve got a tip to share with you today that will potentially save you thousands of dollars on your mortgage payments.
If you’ve bought your house in the last decade but put less than 20% down on it, you’re probably paying private mortgage insurance, or PMI. At this point, you’re probably not even thinking about it, as it is rolled up into your monthly payment. It costs you $100, maybe $150 per month.
However, once you pay down the balance on your mortgage to a 78% loan-to-value ratio or once the value of your home increases enough to cross that threshold, you can eliminate having to pay PMI for the remainder of your loan term.
How do you do this? Just contact your mortgage lender and ask them to have the home appraised once again to eliminate your PMI. If you bought your home in the last 10 years, especially around 2011 or 2012, it has risen significantly in value. If you’re currently paying PMI, you should look into eliminating it. It will save you thousands of dollars over the loan’s term. If you have any questions for us or we can do anything for you or anyone you know, give us a call or send us an email. We look forward to hearing from you soon.