Private Mortgage Insurance is designed to protect the investor or lender for home loans that have less than 20% down payment or equity. A monthly premium is added to your loan payment to cover the insurance cost. In some cases it can be as much as $100.00 or more per month. 

Can PMI be removed:

  Yes. After the property has appreciated and in most cases the loan balance has been paid down, the equity an owner has increases. Once the equity reaches at least 20% the PMI can be removed. In many cases the lender does not inform you. It is your responsibility to request that the PMI be removed if you feel the equity has met or exceeded the 20% benchmark. 

How to remove PMI:

  First you need to have a way to find out if your equity has reached the 20% benchmark. The equity includes the initial down payment, the payments you’ve made against the principle balance, any major improvements you’ve made to the property and market appreciation. Call or e-mail us for a free consultation.
  Most areas of South Central Montana have appreciated over the years so the chances are pretty good that your current market value has increased. 

  Calculate the principle balance owed on your loan against the current market value and if the equity is 20% or greater you will need to contact your mortgage company & request that the PMI be removed. 

  We will walk you through this process. In most cases your lender will require a current or fair market value appraisal. You will already have a good idea if you have the required equity based on your free consultation.