Summit Appraisal Services, Inc.



Private Mortgage Insurance (PMI), is insurance that lenders require most homebuyers to purchase
when the loan amount exceeds 80% of their new home's value. Putting it simply, buyers who
purchase their home with less than a 20% down payment are normally required to purchase PMI.
PMI is a necessary finance tool, it enables home buyers to purchase their homes with less of a down
payment.  

Removing PMI:

  • If you purchased your home on or after July 29, 1999 and are current on all of your mortgage
    payments.  Federal Law requires most loans to automatically terminate once the mortgage is
    paid down to 78% of the home's original value.

  • If you purchased your home prior to July 29, 1999, contact your Lender and inquire about
    removing the PMI.  You should also consider having your home appraiser, lenders tend to be
    more receptive when presented with a certified appraisal report.  If you're thinking of remove
    your PMI be sure:
        * You are current on all of your mortgage payments.
        * You have an 80% equity interest in your home which may occur as a result of the
           following:
             -Your home has undergone extensive renovation which increased its market value, thereby
               increasing your equity interest to 80%.
             -Your neighborhood has undergone a period of renewal, modernization and revitalization,
               thereby increasing your equity interest to 80%.

  • If your annual household income is $100,000 or less, you may be able to deduct the full cost of
    your PMI premiums on your federal tax return.  Speak with your accountant.
Accurate Appraisal Valuations, Superior Turn-Around-Time, Competitive Fees
Private Mortgage Insurance (PMI)
If you have any questions, feel free to contact us
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