| Private Mortgage Insurance... Do you have it? Do you still need it? |
| When a buyer purchases a home with less than 20% down, mortgage lenders require private mortgage insurance (PMI). Mortgage insurance protects the lender from loss due to the default of the borrower. The lender may require monthly premiums or a lump sum paid at closing. In many cases, especially in our area, the value of a home may have increased dramatically in just a few years. If you do have PMI, now is a good time to see if you can drop the coverage and save several dollars a month on your mortgage payment. Check to see if the balance of your loan is now below 80% of the original purchase price. In addition, compare the selling prices of homes similar to yours to determine whether there has been a dramatic increase in value. A comparative market analysis (CMA) will assist you in determining your current value... If your home shows a sizable increase in value, the mortgage company will not automatically eliminate the PMI payment. After doing your homework, call the lender and ask for their procedure in elimination the PMI. In most cases they will insist that a new appraisal be done. The cost of the appraisal may be worth the savings on your monthly mortgage payment! |
| Call for a free CMA to determine the current market value of your home. |
| Eleanor Valliere, GRI Sand Castle Realty Group, Inc. 2220 Venetian Court Naples, FL 34109 Office: 239-594-2170 Direct: 239-671-1021 |
Your Breckenridge Real Estate Resource
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