Private Mortgage Insurance Appraisals

Private Mortgage Insurance or PMI is the supplemental insurance that many lenders ask home buyers to purchase when the amount being loaned is more than 80% of the value of the home. Very often, this additional payment is folded into the monthly mortgage payment and is quickly forgotten. This is unfortunate because PMI becomes unnecessary when the remaining balance of the loan – whether through market appreciation or principal paydown – dips below this 80% level. In fact, the United States Congress passed a law in 1998 (the Homeowners Protection Act of 1998) that requires lenders to remove the PMI payments when the loan-to-value ratio conditions have been met.

Through paying down the mortgage, or an increase in home value, your mortgage may no longer require carrying private mortgage insurance. An appraisal can prove your equity increase and can be used to remove the PMI burden. For the cost of an appraisal homeowners can save money every month for the length of their mortgage.

Initially, mortgage insurance helped you to purchase your home when you were limited in money for down payment, but eventually you will have sufficient equity to remove PMI. By eliminating the expense of this insurance that is no longer relevant you can use that savings for home improvements or to invest as you like.

SF Bay Appraisal is based in Contra Costa County, and services the entire Bay Area.  Mario Mazzamuto and his team are experts in our area and neighborhoods.  We hope you found our appraisal information on the site useful and learned more about our services.  The more you know, the better decision you can make.   Ordering an appraisal is just a phone call or click away.

837 Arnold Drive #210, Martinez, California 94553, United States

Phone: (925) 228-7108 E-mail: mario@sfbayapp.com