How to lower my monthly Mortgage?

[Kenny Smith]

Hey BP community!

Something a lot of homeowners, and even investors, occasionally forget about. PMI...

If you put less than 20% down for your home when you bought it, you're likely paying PMI or private mortgage insurance. This PMI is essentially insurance to help protect the lender if you were ever to default on your loan. Seeing you took out a loan with a higher Loan to Value, you are a riskier borrower, hence the PMI requirement.

However, with the market appreciation going crazy over the last few years, it is very probable you have natural appreciation in your property. If that equity meets or exceeds 20%, you likely will be eligible to get that PMI removed off of your monthly mortgage! PMI cost can varies depending on the price of your home, but a few hundred bucks saved a month is still a huge bonus!

If you think you have this equity, contact your lender ASAP and tell them you'd like to get your PMI removed. They will send out a 3rd party appraiser for as low as $150-$200. If the appraisal comes back showing your sufficient equity, they will take that PMI off.

Lenders typically won’t reach to let you know about this, so it’s important you take action yourself!  If you're here in Denver, shoot me a DM if you’d like a complimentary home value report to see if you qualify! 

Thanks for reading.

[Freddie Chipres]

Quote from @Kenny Smith:

Hey BP community!

Something a lot of homeowners, and even investors, occasionally forget about. PMI...

If you put less than 20% down for your home when you bought it, you're likely paying PMI or private mortgage insurance. This PMI is essentially insurance to help protect the lender if you were ever to default on your loan. Seeing you took out a loan with a higher Loan to Value, you are a riskier borrower, hence the PMI requirement.

However, with the market appreciation going crazy over the last few years, it is very probable you have natural appreciation in your property. If that equity meets or exceeds 20%, you likely will be eligible to get that PMI removed off of your monthly mortgage! PMI cost can varies depending on the price of your home, but a few hundred bucks saved a month is still a huge bonus!

If you think you have this equity, contact your lender ASAP and tell them you'd like to get your PMI removed. They will send out a 3rd party appraiser for as low as $150-$200. If the appraisal comes back showing your sufficient equity, they will take that PMI off.

Lenders typically won’t reach to let you know about this, so it’s important you take action yourself!  If you're here in Denver, shoot me a DM if you’d like a complimentary home value report to see if you qualify! 

Thanks for reading.

Great advice Kenny. Also keep in mind that for FHA loans in particular the only way to remove PMI is by refinancing into a Conforming loan like Fannie Mae or Freddie Mac.

Fannie mae and Freddie Mac will drop your PMI automatically at 78% LTV of the original appraised value.