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Charlene Said:

How do you get rid of PMI?

We Answered:

It depends on how much your house has appreciated since you took out the mortgage, you can have a few options to choose from. The most simple and least expensive way is to submit a formal appraisal that shows your house's current value to be at least more than 20% (please call your lender to double check if it's 20% or 22% ?) above your current mortgage balance (for example, your mortgage balance is $160,000, then your house should be appraised above $200,000's) to your lender and request the removal of PMI. But before you pay $300 to $350 for an appraisal, you need to ask the appraiser to do "comps" to see if the value is there.

Unless your house has increased substantially in value and there is a need for cash out, or to get a much lower interest rate, I wouldn't recommend refinance just for the sake of getting rid of the PMI. The reason is that you might end up paying for more than 30 years on your mortgage (for example, you are in your 2nd year, so now if you refinance, you'll have a brand new 30 year mortgage all over again. This would make you pay 32 years (30 + 2 years of old mortgage). This is not to mention you might make your balance owed increased due to closing cost, etc..

Sam Said:

how do i get rid of PMI.?.i have had my house for 2 years. please tell me if there are ways to do it.?

We Answered:

You must carry PMI until your equity is at least 20% and you've held the mortgage for 5 years.

Victor Said:

DoI have to have an formal appraisal or would a realtor's market analysis be sufficient to get rid of PMI?

We Answered:

Check with the company servicing your loan. There are many different levels of PMI. Some you have to have paid for 2 years, some for 5 years. If you think your local market has lost value it will be hard to get it removed until your principal is paid down to 78%...yes, 78%. That is the norm for removing due to paying down principal.

Samantha Said:

how can i get rid of pmi?

We Answered:

You have to read the fine print.

Alot of people and loan officers think that you just get an appraisal, prove that your home is worth 80% LTV and boom, your PMI is gone....wouldn't it be nice if it actually worked like that.

If you read the fine print on PMI, your home has to be 80% LTV...from the ORIGINAL appraised value of your home, and so many payments must be made on time.

If you are not making timely payments, the lender reserves the right to keep the PMI in place.

The only way out earlier is to refinance, and since you are selling, that wouldn't be a good idea.

Rita Said:

When should I try to get rid of PMI?

We Answered:

Most lender want there to be at least 20% equity for the first loan. If you Have a second or an equity line of credit, this will not effect the 20% that they are looking for. You need to contact your lender and ask them what is involved in getting the PMI removed. It will involve an appraisal, and the appraisal will be conservative. The appraiser will want to see 2 like properties in you complex that has sold in the last 6 months and they will want a third like comp within a few blocks. So if you think you have the 20% equity, go for it and send that PMI money in a better place.