If you bought your home with a less than 20% down payment, you are currently paying for private mortgage insurance (PMI). With every mortgage payment you make, you are also paying a premium to insure the lender in case you default on your loan. If you can prove to the lender that you now have 20% or more equity in your home, the PMI might be removed from your payment, saving you hundreds of dollars a year. You may have enough equity in your home to remove PMI if:
- Your current loan is two years old or more
- You purchased your home below market value
- Or, if you have made recent improvements that increase the value of your home
To remove PMI, your lender will ask for a summary appraisal report done on a Uniform Residential Appraisal Report (URAR) form for a single-family residence. A summary appraisal will include all necessary additional forms and exhibits. If you have a condominium, your lender will ask for a summary appraisal report done on an Individual Condominium Appraisal Report form. If you have a multi-family dwelling, you will need a summary appraisal report done on a Small Residential Income Property Appraisal form.
Call us at (248) 828-8218 for a free phone consultation to determine if an appraisal could be beneficial to you.