Appraisal & Land Use Dynamics, Inc.
Real Estate Appraisal · Feasibility & Market Studies · Forensic Appraisal Reviews
Expert Witness & Litigation Support · Fractional Interests · Right-of-way · Eminent Domain
Residential, Commercial, Industrial, Office, Multi-family, Vacant Land, Subdivision, Special Use Properties
Private Mortgage Insurance Removal
According to a recent industry study, private mortgage insurance (PMI) is paid by approximately 75% of all people with home mortgages. If you qualify, you can reduce your monthly mortgage payments by eliminating PMI - and that's something everyone would like!
What is PMI?
If you purchased your home with less than a 20% cash down payment, your lender most likely added private mortgage insurance (PMI) to your monthly payment. This payment is based upon the original mortgage amount and is paid as part of your monthly mortgage until the underlying loan on your home is 80% or less of it's market value. If the value of your home has increased due to improving market conditions or if you have added a pool/spa or other site improvements, completed a room addition or performed remodeling, etc., you may be a potential candidate for PMI removal.
How Much Am I Paying For PMI?
How much you are paying in PMI is based upon the amount of the original down payment and your original mortgage amount. For example, if you originally paid 5% down for your home and had a $150,000 loan, your PMI would be around $130 per month ($1,560 per year)! As is apparent, the removal of PMI can result in significant savings. Please note, however, that each individual case will vary based upon the loan/value criteria as noted. Statistically, the majority of home owners will save anywhere from $40 to $100 per month which still adds up quickly.
Can I Drop My PMI?
Of course you can drop you PMI if you quality - it's your right and your lender is required by law to do so! But remember, the appraised value of your home must demonstrate that you have at least 20% equity in your residence and that your loan-to-value ratio is less than 80%.
How Do I Drop My PMI?
Step #1: The first step is to contact us and have us complete an appraisal of your residence.
Step #2: Send the appraisal to your lender along with a formal request that your PMI be removed.
Step #3: Enjoy reduced monthly payments on your home!
What Does It Cost?
Depending upon your home and where it is located, single-family residential appraisal reports will typically run between $325 and $375. Additional costs may apply for unique homes, larger estate homes with extensive improvements and/or rural properties.
How Long Does It Take?
Typically it takes us 1 to 2 weeks to schedule an appointment, make the inspection, complete the appraisal report and delivery it to you. Once the lender receives the appraisal report, it normally takes only several weeks from them to drop your PMI.
So what are you waiting for? If you believe you have a chance to qualify for PMI removal, the cost of a professional appraisal report prepared by a state licensed/certified appraiser will likely be recaptured many times over. Stop paying unnecessary PMI and reduce your mortgage payment - you have better things to spend your money on!
TIERRA WEST
Appraisal & Land Use Dynamics, Inc.
133 N. Buena Vista St., Suite #4
Hemet, CA 92543
Inland Empire: (951) 929-2345 / Desert & Beach: (760) 322-9322
Corporate Fax: (951) 658-9593
D. Brian Shumway, Pres-CEO
eMail:
bshumway@tierrawest.com
Revised: March 02, 2010 by DBS
