- 1). How do I find out if I have PMI? Call your mortgage company and ask them. If you have private mortgage insurance, find out how much you are paying for PMI a month and if you meet the requirements to get it removed. Most homeowners don't realize how much money they can save on their mortgage payments each month because of PMI removal.
- 2). How do I remove my PMI?
The requirements to remove your private mortgage insurance vary between different mortgage companies, but most will have somewhat similar standards. When I removed my PMI from my Countrywide mortgage, there were two major requirements from the mortgage lender:
1. The mortgage loan had to be at least 2 years old.
2. The LTV (Loan To Value) had to be 75% or less.
Find out exactly what your mortgage company requirements are. - 3). What is LTV?
LTV is Loan To Value and is calculated by dividing your current loan balance by the current market value of the property. The current market value is determined by having an appraisal done. If you believe your house's current market value meets the PMI or Private Mortgage Insurance removal requirements, then you should arrange with your mortgage company to have the real estate appraisal done.
Warning: Do NOT schedule your own appraisal. Most mortgage companies will only accept an appraisal, which has been ordered by their company. Usually, they will schedule the appraisal and let you know the fee. - 4). How much is the appraisal fee?
When I removed my private mortgage insurance PMI in 2008, the appraisal fee was $310 for single-family homes, and started at $450 for multifamily properties. The fee of $310 may seem high, but when I realized that I would be saving $102 every month or $1224 every year, it was a "no-brainer."
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