Here is Danelle Connors of Black Diamond Mortgage talking about dropping your PMI (private mortgage insurance)!
Today we are talking about dropping your PMI. We are always looking for ways to cut our spending. When did you buy your home? Are you ready to drop your PMI so you can put more towards principle? If you think so, let’s talk about it!
There are some factors needed to accomplish this:
- Your home’s value
- We need the value of your home to be greater than the loan amount
- Need 80% loan to value, meaning you need 20% equity
- This depends on where you are personally and also what the market is doing – you can gain value just by living in your home!
- Home prices are going up – let’s look at some different graphs that show the growth happening in the market
- Maybe you have MORE equity than you think! This could allow for pulling some cash out if your loan to value is, for example, 70%
- Make your payments! We will look at how long you have been paying on your mortgage, where are you sitting right now, and what is going on in your neighborhood
If we think there is a bona fide, legitimate value to changing your loan terms, we’re going to help you. We are not going to fluff and tell you one thing when we believe something else. We will do our research so you know you are making a good decision!
So drop your PMI, cut your payment, send more money to principle and less to that PMI. Get rid of it!