04/23/2021
Do you have PMI (mortgage insurance) on your current mortgage? Did you know there are a few way to remove or reduce your PMI?
1) You can petition your current lender to remove your conventional loan PMI with 2 years on time payments if you have an LTV between 78-80%. The LTV can be reached through normal amortization, increase in value or by paying your mortgage balance down. Generally, an appraisal will be ordered at your expense by your lender will be required to determine your LTV.
2) You can refinance your current loan to remove or lower your PMI without the 2 year payment history above. Even if you have an LTV higher than 80%, you could still shave a lot of money off your PMI payment as PMI based on a a current loan you took out at 97% or 95% LTV is a lot higher compared to a 85% to 90% LTV.
3) If you have an FHA loan you can refinance your loan to a conventional loan and either reduce or remove your PMI based on your LTV. Most FHA loans have at minimum an 11 year with up to full loan term mortgage insurance requirements.
Contact us to discuss the different options to lower/reduce your PMI. With home values climbing now is a great time to find out what option is best for you. In addition, you can take advantage of very low interest rates currently available if you decide to refinance.
Chris Mueller
602-791-6460
[email protected]
NMLS # 209156
Stephanie Boughton
480-227-7092
[email protected]
NMLS # 260745
Barrett Financial Group, LLC
NMLA #181106
