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PMI Removal Appraisal

Remove PMI Appraisal Sacramento Real Estate Appraiser
Home buyers that can’t afford to put 20% down on the purchase price of their new home often opt to take out private mortgage insurance (PMI) with their lender to help seal the deal. This insurance protects the lender from a default, and can add more than $100 to a monthly mortgage payment. It’s very common to get PMI insurance if you have less than 20% to put down. The price you’ll pay depends on your loan to value and your credit score.

The higher the loan to value and/or the lower the credit score the higher the PMI amount. For example, if a borrower with a credit score of 680 takes out a $200,000 mortgage with a 90% loan to value, he will pay about $130 a month in PMI, compared to $95 a month for a borrower with a 750 credit score.

While PMI is a necessary for most home buyers, it’s not something they will have to keep throughout the life of their mortgage. Here are expert tips for reducing and eliminating a PMI to keep more money in savings.

Wait Until Normal Amortization Pays it Down. One of the easiest and most straight forward ways to get rid of PMI is to pay the original balance below 78% of the value of the loan. Once 20% of the loan is paid off, the PMI should be removed. When borrowers pay enough of the balance down, they should call to verify the extra charge has been removed.

Get the Home appraised by Sactown Appraisals. Buyers that bought the home when prices were really depressed or did a lot of upgrades to increase their home’s value can opt to have the home reappraised with the hope that it will be worth 20% more.

You have to work with the mortgage insurance company to get an appraiser approved by the insurance company and if the value is deemed below that 78% they can take it off. Going this route is not without risk: the borrower must foot the bill for the real estate appraisal.

Refinance Your Loan. Homeowners with a high interest rate on their mortgage and PMI might qualify for a mortgage refinance that could not only reduce their interest rate, but also eliminate PMI.

The PMI rules under any new loan terms are still the same: pay 20% or the home has to appraise higher than the original loan. Homeowners usually have to pay for the appraisal, but if the home value increases, it could be a win-win situation.

Opt for Lender Paid Mortgage Insurance. An alternative to PMI is lender paid mortgage insurance, which is when the lender agrees to waive the PMI mortgage insurance in exchange for the borrower paying a higher interest rate over the life of the loan.

Going this route may provide a larger tax deduction than private mortgage insurance, but it also can’t be canceled. The lender paid mortgage insurance may make the most sense for home buyers that plan to move or refinance within 10 years and/or have a shorter-term mortgage.

Home Appraisal Sacramento
Local Real Estate Appraiser in Sacramento

Call us: (916) 743-5219 



Founded by Bart Nathan, Sactown Appraisals has excelled to the top of our field by offering great customer service, accurate appraisals and fast turnaround times. Sactown Appraisals is located in the Sacramento, Ca area. We offer appraisal services in the city of Sacramento and Roseville as well as the surrounding cities. We provide Sacramento real estate appraisal service for a variety of clients. Lenders, homeowners, CPAs, attorneys and real estate agents just to name a few. We have over 10 years of experience in appraising properties in the area. We can complete residential appraisals for the simplest homes to complex properties. Most home appraisals in Sacramento are completed within 24-48 hours of inspecting the property. We offer competitive pricing, Licensed and insured, experienced, professional and have local knowledge of our coverage area. Inspections are scheduled Monday through Friday but we can inspect on Saturday and Sunday if needed. Appraisal reports will be sent as a PDF or can be mailed as a hard copy.


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