What Is PMI?
When you buy a house, you may motice a monthly charge incorporated into your mortgage payment listed as PMI.
If you can not afford to make a 20 percent down payment, PMI, or private mortgage insurance protects your lender from loss is case of default. Private mortgage insurance will allow you to make a down payment significantly lower than the standard 20 percent, while still obtaining tradirional financing.
Depending on your loan, you should be able to cancel your PMI coverage after septic guidlines have been met. These guidelines may include having made no late payments and having built at least 20 percent equity.
Equity can be built quickly if your property value increases or if you make extra payments toward yourloan principal. To cancel PMI, you will need to contact your lender. Canceling PMI often requires having your home's loan to value ratio verified through a formal property appraisal.
Brought to you By Tyrone Brown at Keller Williams of Tacoma & Olympia Washington.
Having many years of Real Estate Sales and Investing experience I've discovered that caring for clients is the most important aspect of my job, I work the Thurston & Pierce county markets in WA State
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