Getting Rid of Private Mortgage Insurance

Homeowners, you may have one less bill to pay relating to your home. Getting rid of Private Mortgage Insurance (PMI) expense should be easier. One million homeowners now pay from $200 to $600 each year in unnecessary PMI premiums.

Congressional legislation went into effect July 1, 1999 requiring automatic termination of PMI when the homeowners has paid at least 20% of the home’s value for loans made after July 29, 1999. High risk borrowers (with poor credit) may have to make PMI payments until they reach 50% equity.

To remove PMI now: you may have to pay $150 tp $400 for a new appraisal to prove your case. Contact your lender for details on how to take advantage of this Mortgage Cost Break.

Source: Roll, R. (1999, May). Mortgage cost break. Bottom Line Personal, Internet.