Removing Your PMI Payment
So you bought a great home a few years ago, but you’re still paying $200, $300, or MORE per month in PRIVATE MORTGAGE INSURANCE.
Isn’t it time to take control of your mortgage and STOP paying Private Mortgage Insurance?
Smart Colorado home owners know we’ve gone through the biggest real estate boom in history and your house is probably worth more today than when you bought. It’s time to see if you can STOP paying PRIVATE MORTGAGE INSURANCE and put that money back in your own pocket — not the banks.
If you’re eligible, you’ll get a “no obligation” proposal to lower your interest rate, remove your monthly PMI payments, and lower your monthly payment putting more money in your pocket.
What is Private Mortgage Insurance (PMI)?
On a conventional mortgage, when your down payment is less than 20% of the purchase price of the home mortgage lenders usually require you get Private Mortgage Insurance (PMI) to protect them in case you default on your mortgage.
How Does Private Mortgage Insurance (PMI) Work?
PMI companies write insurance policies to protect approximately the top 20% of the mortgage against default. This depends on the lender’s and investor’s requirements, the loan-to-value ratio, and the type of loan program involved. Should a default occur the lender will sell the property to liquidate the debt, and is reimbursed by the PMI company for any remaining amount up to the policy value.
How Much Does Private Mortgage Insurance (PMI) Cost?
PMI costs vary from insurer to insurer, and from plan to plan. Example: A highly leveraged adjustable-rate mortgage requires the borrower to pay a higher premium to get coverage. Buyers with a 5% down payment can expect to pay a premium of approximately 0.78% times the annual loan amount, $92.67 monthly for a $150,000 purchase price. But, the PMI premium would drop to 0.52% times the annual amount, $58.50 monthly if a 10% down payment was made.