An Appraisal Can Eliminate PMI
How Home Appraisals Can Help You
Remove PMI
If you purchased a home in Columbus, GA, with less than a 20% down payment, chances are you're paying Private Mortgage Insurance (PMI). This extra expense, also referred to as lender’s insurance, can increase your monthly mortgage payments significantly. The good news is that a new home appraisal may allow you to cancel PMI and save money. At Peach Property Appraisers, we’re here to guide you through the PMI removal process and ensure you have the best chance of success.
What Is Private Mortgage Insurance?
Private Mortgage Insurance (PMI) is a policy that benefits the lender when a buyer puts down less than 20% on a home. It’s a way for lenders to protect themselves, but for homeowners, it means extra costs. Thankfully, with rising property values in Columbus, GA, homeowners have the opportunity to remove this insurance by increasing their equity, which can be proven through a professional home appraisal.
Why Do You Need Lender’s Insurance?
Lenders in areas like Midtown or North Columbus require PMI to mitigate their risk. It covers the lender in case you default on your loan. However, once your loan-to-value (LTV) ratio falls below 80%, either through mortgage payments or increased property value, you may be eligible to remove PMI with a real estate appraisal.
The Role of a Property Appraisal in PMI Removal
A home appraisal serves as proof of your home’s current market value, which is critical when attempting to remove Private Mortgage Insurance. If your home has appreciated enough, a new appraisal for PMI removal can show that your loan balance is now less than 80% of the home's value. This is key to getting rid of that extra expense.
Steps to Get Rid of PMI Using a Home Appraisal
Why a PMI Cancelation Appraisal is Your Best Option
You have several methods available for removing PMI, such as paying down your loan or refinancing. However, getting a real estate appraisal is often the fastest and most effective option.
Rising Home Values in Columbus
Neighborhoods like North Highland and Green Island Hills have seen property values rise steadily. This may mean you already have enough equity to get rid of PMI with a home appraisal.
Faster PMI Removal
Rather than waiting for years of payments or dealing with refinancing fees, an appraisal can quickly show that your equity has reached the 20% threshold, allowing you to eliminate Private Mortgage Insurance in no time.
No Refinancing Required
A PMI removal appraisal is a straightforward process without the complexities of refinancing. Once the appraisal confirms the value, you can immediately request the removal of PMI and start saving on your mortgage.
Financial Benefits of Removing PMI
There are clear financial advantages to removing PMI:
Monthly Savings
Once PMI is canceled, homeowners in Columbus, GA, can save hundreds of dollars every month. This extra money could go toward home improvements, savings, or enjoying local eateries like the Banks Food Hall along the Chattahoochee RiverWalk.
Increased Cash Flow
Without the burden of Private Mortgage Insurance, your cash flow will improve, giving you greater flexibility in your monthly budget. Whether you’re considering a home renovation or saving for your family’s future, eliminating PMI opens up new financial possibilities.
Common Misconceptions About PMI Elimination
There are a few myths that homeowners often believe when it comes to PMI cancelation:
You Must Remodel to Cancel PMI
Some think they need to renovate their home to increase its value before removing PMI. While upgrades like a kitchen remodel can help, many homes in areas like Midtown have already appreciated enough due to the increased real estate market alone, and a simple appraisal can verify that.
PMI Automatically Disappears
In many cases, PMI won’t go away on its own, even if you’ve reached 20% equity. You’ll likely need to request a home appraisal and submit it to your lender to start the process of canceling PMI.
Ready to Order a PMI Removal Appraisal?
If you’re ready to stop paying Private Mortgage Insurance and start saving money on your mortgage, it’s time to act. Contact Peach Property Appraisers for a PMI removal appraisal. Our team of experienced local appraisers knows the Columbus, GA housing market inside and out.
Whether you’re in North Columbus, Brookstone, or Midtown, we’ll help you accurately determine your home’s value and assist you in removing PMI quickly.
Get in touch today to schedule your real estate appraisal for PMI removal and start saving money on your mortgage. Let Peach Property Appraisers be your trusted partner in helping you build equity and eliminate unnecessary costs.
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