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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 surprised how quickly the value has gone up and they now have at least 20% equity in their 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!
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. (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 the principal balance. You'll want to be aware of the recent sales price of the homes that sell in your neighborhood. Be aware 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 so you will be relying mostly on home appreciation.
A Home's Best Mortgage, Inc. can help find out if you can eliminate your PMI. Give us a call: (303) 650-9400 or fill-out our Quick Quote form on the home page.