Скачать или смотреть 🛑 How To Remove PMI Early!

When you purchase a home with less than 20% down, your lender will typically require you to pay “private mortgage insurance” a.k.a. PMI in case you default on your loan (stop paying).

💸 This adds up to a few hundred dollars a month that goes straight to the bank instead of towards paying off your home!

Normally, banks will automatically remove the PMI after a few years when your payment schedule gets you to the 20% equity mark.

But if you purchased your home in an area that has seen high appreciation, you may be able to remove your PMI early!

🏡 The first thing that you have to do, is check how much your home is currently worth (you can use Zillow as a good place to start).

If the difference between the current value and your loan amount is over 20% of the current value, then you can get your PMI removed.

As an example, let’s say you purchased your home for $300,000 with 10% down. This means your loan is $270,000 and you have $30,000 in equity (from your down payment).

📈 But after a few years, the value of the home increased to $350,000... Now your equity is $80,000 (not including any equity you gained from paying off the loan over the past few years)! This brings your equity to over 22% ($80K/$350K)

Once you hit this mark, contact your lender and ask them to remove the PMI from your loan early. They’ll probably ask you to pay for an appraiser (around $700) to verify the value of the property.

But once that’s done, your PMI will be removed and you’ll save a few hundred every single month going forward!

💰 Which is money that you can put back in your own pocket to start investing more and building generational wealth.

#realestate #mortgage #interestrates