• What is Mortgage Insurance (also known as PMI)?
• What is Equity?
• How do I drop my mortgage insurance?
• Who can do the appraisal?
• Where do I find a state certified/licensed appraiser?
• What is the cost of an appraisal?
• How much is my Mortgage Insurance?
• When will the Mortgage company reduce my payments?
• Is my lender required by law to drop my PMI?

What is Mortgage Insurance (also known as PMI)?

PMI is an insurance premium that is taken out by a mortgage company that protects the lender in the event of foreclosure-but don't be fooled; this has nothing to do with protecting the borrower. When you purchased your house your lender added mortgage insurance,also called Private Mortgage Insurance (PMI), to your monthly payment unless you made at least a 20% down payment. This payment is based on the original mortgage amount and is paid as part of your monthly mortgage payment until you have an appraisal that shows that your house has increased in value, including additions and improvements to the point that your loan is 80% of your current house value.

What is Equity?

Equity is the difference between the value of your home and the mortage balance (i.e., If your home is worth $100,000 and your mortage balance is $80,000, then your equity is $20,000).

How do I drop my mortgage insurance?

-First step is to contact your local appraiser. The only way to drop your PMI is to have an appraisal that shows that your loan balance is 80% of your home's current market value. The only way to find out if your house will appraise to that amount is to contact your local appraiser. It's that simple!
-Second step is to send your lender a copy of the appraisal and request to have your PMI dropped.
-Third step is to enjoy having a lower mortgage payment.

Who can do the appraisal?

You must have a state certified or licensed appraiser do the appraisal--no other professional can provide this information.

Where do I find a state certified/licensed appraiser?

This web page will direct you to a state certified/licensed appraiser in your area.

What is the cost of an appraisal?

Not much compared to the savings you can soon realize!!! Appraisal costs can vary in different areas and with special houses. However, typically a residential appraisal will only cost between $300 and $400.

How much is my Mortgage Insurance?

The only way to find out is to call your lender's customer service representative. However, typically the cost is $0.38-$0.78 per $100 of your loan amount. See following examples:

When will the Mortgage company reduce my payments?

Typically, it only takes a few weeks for your lender to drop your mortgage insurance and for you to start saving money!

Is my lender required by law to drop my PMI?

Yes! As long as you have an appraisal that shows you have a 80% loan to value.

MISSION STATEMENT

The mission of appraisalstudio.com is to provide residential real estate appraisers a means to promote their business to their local citizens, provide homeowners with the information necessary to stop paying unnecessary mortgage payments and help direct homeowners to appraisers in their area.