How to remove the mortgage insurance known as the PMI?

remove mortgage insurance
In the last 2 years, home prices have risen in value and that creates an opportunity for removals to be requested.

November 15 – Hispanic Solutions Group

What is PMI or mortgage insurance?

It is the insurance that protects the bank from a loss, that is, if you cannot pay the 20% down payment, the bank will make you pay that charge to protect the loan. PMI is expensive, but at the same time it gives you the opportunity to obtain a mortgage. What people do not know is that you can ask to remove when you meet the requirements, many banks do not want to accept it or make the process difficult.

Under the Homeowners Protection Act established in 1998, people can request early removal or complete cancellation of the PMI, if it excludes government-guaranteed FHA loans.

In the last 2 years house prices have risen in value and that creates an opportunity for removals to be requested.

That is why we have prepared some useful tips to be able to cancel this extra payment:

  1. Before starting this process you have to confirm that you have not been late in any payment that is one of the requirements that you request if there is a delay your request will be denied.
  2. Confirm that you do not have a second loan or second match or the famous junior Morgan G.
  3. Verify that your house has won Equity or bone capital that the value of the one you bought has risen.
  4. Once the value of the house has been determined, he requests the removal of the PMI via writing.
  5.  Refinance the house for fewer years.
  6. If you have not yet managed to win your house Equity or capital you can start paying extra amounts on the capital is a practice that helps a lot to reduce not only the years of payment but the interest that you will pay in the long term, this part is exclusively for people who have FHA loans.

The first buyers take into account that the aid they received was in many cases loans money that they had to repay or in other cases loans that could be forgiven after certain conditions, the most effective way to get out of that loan is by refinancing the house and for that The best way is to prepare with good credit, remember that having good credit allows you to obtain the best economic benefits translated into good interest rates and translates into more savings for you, but the most important thing is that you can finish paying that house in less time , My recommendation is that you do the refinancing with the bank that is currently serving that loan, contact and ask what are the conditions for refinancing,in many cases they will tell them that the aid they will have to pay the amount they gave and enlarge the loan.

You can do the calculations, for example a loan of $ 200 with an interest of 4% for 30 years, the interest that they will end up paying is 144,016, if they refinance for 15 years $ 180,000 because they already earned Equity plus what they have to pay back they would pay $ 58,386 in interest.

If you have any questions related to finances, credits and other related topics, but do not know who to turn to, contact us by going to Hispanic Solutions Group, writing to info@hispanicsolutionsgroup.com, by calling 612-216-1599 or accessing financial information on YouTube, The credit channel, Our specialists in charge of Mrs. Jessica Aliaga will be informing you of any concerns about this and other financial matters of general interest and guidance as in this topic, today we bring you the following report so that you can make your most important economic decisions , also him We invite you to follow our social networks: LinkendIn, Facebook, Twitter and Instagram.