PMI Removal Appraisals
Private mortgage insurance is an insurance type many prospective homebuyers love to utilize because it allows them to purchase homes with financing from lenders with a down payment of less the 20% of the home purchase's price.
While there are benefits that the insurance holder can accrue with private mortgage insurance, there are disadvantages that they can also accrue, which leads many to seek the removal of their private mortgage insurance.
However, most lenders require a real estate appraisal to be carried out by a state-certified appraiser to serve as the primary evidence before the lender can remove private mortgage insurance.
Sometimes, PMI removal appraisals may be complicated and usually generate questions. Below are some frequently asked questions about PMI removal appraisals and the correct answers to keep you informed.
What is a PMI removal appraisal?
A private mortgage insurance removal appraisal is the due process a PMI holder carries out when they want to cancel their private mortgage insurance.
Typically, it requires the professional and certified appraiser to assess private mortgage insurance and ascertain the loan-to-value (LTV) of the loan to know if the lender can remove the private mortgage insurance.
What are the conditions for a PMI removal?
The conditions for a PMI removal vary depending on the property's location. However, when a state-certified appraiser conducts a real estate appraisal, the insurance holder can meet the proof of these conditions.
Do I require an appraisal company for my PMI removal appraisal?
Generally, you are not required to pay private mortgage insurance throughout your mortgage payment. You can request the removal of your PMI when the mortgage reaches the mid-point of the loan term or when your mortgage balance reaches 78% of the home's value.
However, mortgage lenders require that a state-certified appraiser do a PMI removal appraisal before they can remove the private mortgage insurance.
Suppose you reside within Washington D.C, Anne Arundel, Prince George's County, Virginia, and the environs. In that case, we have state-certified and experienced appraisers who can handle your PMI removal appraisal with utmost professionalism.