Putting a down payment of 20% when you purchase is a big commitment not often afforded to most buyers. You’ve done a great job paying down principle while enhancing the value of your biggest asset with some improvements. Now its time to reward yourself by having the PMI from your lender removed. This requires an appraisal report showing the current market value to your lender, indicating that the value of your home now has equity greater than the 20% required to avoid PMI.
As you are aware, paying PMI provides no benefits to you as you cannot use the payment as a benefit, similar to paying principle and interest. Getting into your home for less than the 20% down payment was a dream come true as it opened the door to your new home. Now that you’ve been in your home for a period of time, and values may have increased in your town, its time to take advantage. We can provide an appraisal report, which will hopefully reflect the increased values, allowing you to take advantage of the new found equity since you bought your dream home.
Perhaps you built an addition to your home, or finished the basement, or updated items throughout the home and improved the overall quality and condition. This likely could increase the value of your home to a high enough equity position to have PMI removed.
PMI removal is something that you, the homeowner, has to initiate. Contact your lender to find out the steps needed to have PMI removed. If you are instructed to contact an appraiser to provide a market value for your home, please email or call us at Allied Appraisal for a free quote.