Although private mortgage insurance may have allowed you to purchase your home, there will come a time when this added monthly expense will no longer directly benefit you.
Most lenders require a real estate appraisal by a state-certified appraiser, such as Brookhaven Home Appraiser, as the primary proof required to eliminate unnecessary PMI. The exact rules for canceling PMI are largely in the hands of your lender and the company from whom your lender buys mortgage insurance. Some baseline rules about cancellation were established by the federal Homeowners’ Protection Act of 1998. This law, however, doesn’t offer consumers as much protection as its name would suggest, and it applies only to people who purchased their homes after July 29, 1999.
Even if a homeowner doesn’t have enough equity, Congress recently passed a law which allows PMI to be deductible from your taxes. This law is retroactive to 2012 so many recent home purchasers should be able to benefit from it. There are exceptions and income limits, so a tax professional should be contacted for specifics.
Contact your lender to find out the appropriate PMI cancellation procedures. It is best to write a letter to your mortgage lender and formally request guidelines. Lenders will often require an appraisal by a state-certified appraiser as reassurance that the 20% required equity on your house has been met. Let us at Brookhaven Home Appraiser help you remove your PMI.
At Brookhaven Home Appraiser, you will find that as your local Brookhaven real estate appraiser we work hard to provide you not only appraisal services in Brookhaven and the surrounding areas, but information that can help you as a buyer, seller, or attorney be more knowledgeable about real estate appraising in and around your neighborhood. Since 2001, we have provided clients with the excellent valuation services. We may be able to help you reduce your mortgage payment. Give us a call today or contact us via email.