How To Get Rid of PMI - (Private Mortgage Insurance)
Channel: Living in Boston & the Burbs by Jeffrey Chubb
Date: 2021-02-28

How to get rid of Private Mortgage Insurance (PMI)

Private Mortgage Insurance is required in most cases when getting a loan if you do not put more than 20% down on a home loan (i.e. have a 20% equity position in a property). 

It is an insurance premium that is provided by a 3rd party for the bank which covers the loss up to that 20%. This insurance premium is what motivates a bank to lend and at the low rates to a borrower with less than 20% down.

There are three ways to remove PMI. You can either provide a new appraisal to the bank to show the new value, wait until you have paid down 78% from the original appraised value. Or refinance the property which really only makes sense if interest rates have not increased. 

At 78% of that original appraised value, a bank should automatically roll off the Mortgage Insurance Premium. Should. You will want to call them to verify if this is the case. 

If you think the market has appreciated to give you that 20%, then the first thing you should do is call your Realtor to verify the market comps. Your Realtor can do this at no cost and this way you will have actual comps to provide to an appraiser. 

Recap of the steps to removing your Private Mortgage Insurance
1. Call your Real Estate Agent to verify your property value
2. Call your mortgage banker to see if interest rates have improved and if a refinance might be better than just removing the PMI
3. Call your bank and verify the process of getting new appraisal
4. Get a new appraisal done on the property
5. Submit new appraisal to your bank

https://www.boston2.com/blog/how-to-get-rid-of-pmi-private-mortgage-insurance/

Jeffrey Chubb  |  Chubb Homes Team  |  617-480-2600  |  Jeff@Boston2.com  |  www.Boston2.com