Down Payment Financing Mortgages

Save Money–Say Goodbye to PMI

Private mortgage insurance or PMI is a must-have for homebuyers who purchase a home without putting down at least 20% isn’t it? While you may have needed to buy it when you signed for your mortgage, once you’re comfortable in your house, it may feel like you would rather spend your hard-earned money on something else. After all, those fees add up quickly! So, is it possible to get rid of your PMI? It may be, utilizing one of the below methods.

  • Refinancing – One common way to rid yourself of a PMI payment is to refinance your mortgage. If you think your home has appreciated in value enough that you could get a loan that accounts for less than 80% of the current value, you may be able to eliminate the PMI.
  • Appraise – In some cases, you can have your home appraised, and if the appraisal shows a high enough value, you will be able to demonstrate that you do not need to pay the PMI. You will need to find a lender that accepts this proposal, however.
  • Remodel – If your home hasn’t raised in value on its own, you might be able to spend some money and remodel it so that it will be worth more. At this point, you will have to look at your current financial picture and decide if this is a smart choice or not. Consider talking to a mortgage counselor before doing something like this.
  • Make Larger Payments – It’s hard to believe, but paying just $50 or $100 additional every month can have a significant impact on your bottom line. In a short time, you may find that you have chipped away at the amount owed on your home and can qualify to rid yourself of that PMI charge.

If you would like to talk to an expert about your insurance expense or your mortgage in general, contact us at Liberty Financial. Let us help you save money, save time and get rid of that PMI. We can’t wait to work with you.