Goodbye, PMI!

Are you looking for a mortgage? We'll be glad to answer your questions about your mortgage needs! Give us a call today at (303) 650-9400. Want to get started? Apply Online Now.

 

Refi out of PMI

If you have a relatively new 30-year fixed FHA loan you maybe aware you'll be paying mortgage insurance for the entire term of your loan regardless of how much equity you have gained. With either an FHA or Conventional loan if you feel you have 20% equity then its time to "refi out of PMI". With the high appreciation in value we have experienced in Colorado many are suprised how quickly the value has gone up and they now have at least 20% equity in thier home. An appraiser will have to verify the new value but you can check out out our Home Price Index to get an idea of where your current value may be. If you've got 20% equity then give us a call or apply on-line and we'll help you to refi out of PMI! 

Another Option

For conventional loans made since July 1999, lending institutions are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance goes lower than 78 percent of your purchase price - but not at the point the loan reaches 22 percent equity. (The legal obligation does not apply to certain higher risk mortgages.) You must have a good pay history. 

 

Verify the numbers

Familiarize yourself with your loan statements to keep your eye on principal payments. You'll want to be aware of the the purchase amounts of the homes that sell in your neighborhood. You are paying mostly interest if the closing was fewer than 5 years ago, so your principal most likely hasn't been reduced by much.

A Home's Best Mortgage, Inc. can help find out if you can eliminate your PMI. Give us a call: (303) 650-9400.

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