Lower Your Mortgage Payment Without Refinancing – If you’ve been considering refinancing but feel like you waited too long or have another reason that you don’t want to go through the refinance process, I have a suggestion for you and it’ll help you potentially lower your monthly mortgage payment without refinancing!
Lower Your Mortgage Payment Without Refinancing
Once you reach a 78% loan to value on your mortgage, then you can remove what’s called private mortgage insurance from your monthly mortgage payment. Traditionally, that mortgage insurance falls off once you have paid down your mortgage to that amount. But, you can use the equity and the appreciation that’s taken place in the last few years to get there a heck of a lot faster. By faster, I mean now.
Step 1 – Do I have private mortgage insurance?
By taking the private mortgage insurance off you might save $50-$200 a month. The first step is to figure out if you’re paying private mortgage insurance. You can look it up on your online banking for the mortgage or your monthly statement that you received in the mail or through email. Now, mortgage insurance is different than homeowners or hazard insurance. So, it’s important that you figure out whether you’re actually paying private mortgage insurance. On the breakdown of your payment on the statement, it will either say PMI or mortgage insurance. It will say principal and interest, taxes and insurance (which is different insurance), and if you pay private mortgage insurance it will be listed separately.
Step 2 – Contact Me!
Step two is to contact me so I can help you determine what the current market value is of your home. You’ll be able to share with me what your mortgage balance is and I will go through and help determine what I think the fair market value would be. It’s important that you don’t rely on any online indicators, tax value, what your neighbor’s house sold, etc., because if you’re close to that 78% mark but not quite there you do not want to move on to step three. You only want to go to step three if you’re sure that your mortgage insurance can be removed.
Step 3 – Contact Your Lender
Step three is the contact your lender and tell them that you want to have the PMI removed. The best way to do that is to call the customer service number and work on speaking to an actual human being. Most of the time they’ll either send you a form or help you to fill out a form online while they’re on the phone with you. They will also want you to pay to have an appraisal done. The appraiser will determine the market value and that will basically figure out if you are at that 78% or better mark for the bank. A full site appraisal will come in around $400-$500; it will be less if they do an online evaluation. You probably want them to do an on-site appraisal because that will give you the most value, and if you’re close to that 78% you want to make sure that appraisal comes in as high as possible so that you can in fact get that mortgage insurance taken off. Make sure that you understand the process and the timeline for all this to be done, and if they do determine you’re at 78% or better, how quickly they will figure out how to get your mortgage insurance off.
Wrapping it Up – Lower Your Mortgage Payment Without Refinancing
It’s a really great opportunity and some people don’t realize they had that opportunity until it falls off organically by you paying the mortgage down. But, with the way things have been appreciating so quickly, some clients are saying that they don’t want to refinance or they think they might move in the next few years. Also, if you just bought within the last year or two and you put 5% or 10% down, you may be at the level where you can have this mortgage insurance removed. It only takes a few minutes to check! Keep in mind that not all mortgages have private mortgage insurance charged this way, so if you look at your online banking are a little bit confused as to whether you have it or not, feel free to reach out to me. Maybe be prepared to send me a copy or a screenshot of your statement and I’ll try to help you figure out if you do pay that kind of insurance that might be able to be removed. Feel free to give me a call at 919.818.5001.
Please share this video with any friends or family or coworkers! We’re all trying to get ahead right now and I’m always happy to help!
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