How To Eliminate Your Private Suggested Reading

Typical Lender Requirements:

• Written request to remove PMI
• An appraisal performed within the last six months by a lender approved appraiser showing a loan to value ratio of 80% or less (20% + equity)
• No late payment in the last 12 months

Second
Determine that you have at least 20% equity in your home

Loan Amount divided by .80 = the value your home needs to exceed in order to have at least 20% equity

My loan balance $__________ divided by .80 = $__________

Your lender should provide you with a list of approved appraisers. If your loan has not been sold you might be able to use the original appraiser that appraised your home when you bought it. Check in your closing paperwork for a copy of your original appraisal. If you have a copy of the original appraisal and that appraiser is approved by your lender you may be able to negotiate a significant discount on an updated appraisal. Most appraisals charge between $300-$400.

This is a sample letter requesting to remove your PMI:

January 1, 2006

Re: Loan Amount #__________

To Whom It May Concern:

Please consider this written notice to have the Private Mortgage Insurance (PMI) removed from my/our loan.

Enclosed please find an appraisal performed within the last six months by an approved appraiser. The updated apprasal does prove a current loan to value (LTV) ratio of 80% or less. Also, please note that I/we have had no late payments within the last 12 months.

I/we feel we have met all of the requirments expect to have this effective for our next payment. I/we look forward to hearing from you to confirm the removal of our PMI. Please do not hesitate to contact me/us if there are any questions regarding this matter.

Thank you for your assistance and timely response.