The Good News about PMI

The Good News about PMI

Here’s the good news. PMI doesn’t last forever.

You only have to pay the premiums until you owe less than 80% of the home’s value. This can happen in a couple of ways.

• Make your regular payments and wait until you pay as much as necessary to get your principal balance below 80% of the original home value.

• Make regular payments but pay for a new appraisal when you know homes in your area appreciated. This may allow you to cancel PMI early.

• You can also make larger mortgage payments than is required to pay the principal down faster.

You can request to cancel PMI whenever you get the balance lower than 80% of the home’s value, but lenders use the original value unless you pay for a new appraisal.

As long as you have a timely payment history and there aren’t any other issues with your account, they may approve your request to cancel it.

If not, by law lenders must cancel PMI automatically when you owe 78% of the home’s original value.

Final Thoughts

PMI doesn’t add a lot to your mortgage payment, and it makes it a lot easier to buy a home without a large down payment.

If you have good credit and a low debt-to-income ratio, you might qualify for conventional financing with PMI. You’ll pay the insurance temporarily while you enjoy your new dream home.

If you need help finding the perfect home or understanding how PMI would affect your payment, contact me today!

___________________________________________________

​​​​Shenita D. Perritt, Realtor®, SFR® 

Bennett Realty Solutions 

Licensed in DC, MD, & VA 

Residential & Commercial Real Estate Services

Short Sales & Foreclosure Specialist

Office: 301-459-5040 |  Mobile: 202-664-2841​

Let's Stay Connected:

​ ​

​​Search for Homes | New​ Homes​ Construction

​​Email: [email protected]​ | www.shenitasellsrealestate.com​

📅Free Consultation:  http://bitly.com/MeetShenitaP

Author: Shenita Perritt
Phone: 202-664-2841
Dated: July 8th 2022
Views: 50
About Shenita: Shenita is a licensed commercial and residential real estate professional in the District of Columbi...