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What is PMI or Private Mortage Insurance? When can I cancel it?

By
Real Estate Agent with RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax

 mortgage insurance,what is PMI,what is private Mortgage Insurance, Chantilly Highlands realtor

 

Welcome Home to Chantilly HighlandsTim: I purchased a home in Chantilly Highlands two years ago and I have something called PMI on my loan. What exactly is the function of PMI, Private Mortgage Insurance, and as a homeowner do I have to pay it forever?

Steve: If you purchased your home within the last 5 years and put less than 20% down, you probably had to acquire PMI when you purchased your home, even if you used and FHA mortgage. Private Mortgage Insurance protects your lender in the event that you default on your mortgage.

 



Soon the snow will melt and the pool will open

It enables lenders to offer lower interest rates and make loans to folks Spring is comingthat might not otherwise be deemed to be good credit risks. You can see how necessary it has become due to the high default rate that has occurred over the last 3 years.



 The good news is that once your home has appreciated to the point where you have more than 20% equity in it, you will be able to stop paying it most certain conditions. Check the article below for more detailed information on PMI and how to go about canceling it when the time comes.

Visit houselogic.com for more articles like this.

 

 

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Why pay more and get less when selling your home? Jan and Steve Bachman of RE/MAX Gateway use professional photographers, create interactive photo floor plans, print full color brochures, and make an individual property website for your listing that goes out to 40+ public real estate search sites including Realtor.com, Trulia, Zillow etc.

 

We also create a custom photo tour that is sent to other agents and prospective buyers.

 

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RE/MAX Hall of Fame, Platinum Club, A Washingtonian Magazine Top Agent 2018

Happy to Help. No Hassle, No Pressure.

Jan and Steve Bachman are full time Realtors® with RE/MAX, specializing in Homes for Sale in Fairfax, Loudoun, Prince William and Arlington Counties.

    

 

Our 3 rescue dogs have been GREAT! Go get a couple.

Comments (2)

Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

The removal of PMI often requires an appraisal and sometimes the numbers just come in too low all too often!

Dec 22, 2009 10:04 AM
Steve and Jan Bachman
RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax - Herndon, VA
Realtors - Northern Virginia

Thanks for stopping by Vickie,

Yes, we have been plagued by low appraisals here since spring. I guess they fee the need to over compensate for their former profligate ways.Appraiser attempting to clean up former mess

Dec 22, 2009 11:14 PM