Did you know you may be able to remove your Private Mortgage Insurance and save month every month? If you didn’t put down 20% on your home, you’ve likely been making monthly PMI payments.
If you made the minimum down payment of 5%, you’ll have 5% equity in the home. Lenders use a loan-to-value ratio when determining PMI requirements and rates. In the case of putting down 5%, your loan-to-value ratio would be 95%.
How long must you keep PMI coverage?
This will depend on your credit score, your loan-to-value ratio, the value of the house at a given time and the terms of your loan agreement. Often, once you begin paying PMI you’ll have to keep it for at least two years regardless of the loan-to-value ratio.
Find out if PMI coverage can be removed today
Contact our office today via telephone, using our contact form or filing out our Pre-Approval form. One of our qualified representatives will reach out to you quickly and begin the process of finding out if we can eliminate the need for monthly PMI payments.