Chicago, IL PMI Removal

model house sitting on stack of money

PMI, or private mortgage insurance, gives people the ability to buy a home without requiring a down payment of higher than 20%. Many homeowners may wish to transfer PMI payments from an escrow account to their own savings.

While PMI is often important for lenders and investors to make sure the borrower continues to pay, many homeowners continue to pay PMI when it’s no longer necessary, culminating in potentially thousands of dollars in unnecessary insurance premiums.


PMI Cancellation

However, once homeowners have reached 20% equity through home renovations, paying a mortgage’s principal value, or appreciation, they can make the lender cancel the PMI.

Homeowners can achieve this with a simple request for cancellation, often through a form that the lender provides. An accurate appraisal can help prove that the equity has exceeded 20%.

Getting an Appraisal to Cancel Private Mortgage Insurance

Once a homeowner has accumulated 20% equity for the home – or 25%, depending on your bank’s requirements – he or she can take steps to begin the PMI cancellation process.

First, homeowners should contact the lending institution where they send their mortgage payments, which may or may not necessarily be the same as the original lender. The lender will be able to assist with cancellation and inform the homeowner of how the remaining balance on the mortgage.

Loan Services

Different loan servicers will have varying steps to follow when going through the cancellation process, so it’s important to ask about what the lender specifically requires to initiate and finalize cancellation.

In many cases, getting a real estate appraisal is the main proof that can help guarantee PMI removal. An experienced and qualified appraiser can evaluate your home and help determine if you have met sufficient equity to warrant PMI cancellation.

An appraiser can help you understand exactly what your home’s value is, and provide adequate documentation to convince your lender that PMI payments are no longer required.

Evaluating Homes to Determine Value

An appraiser at Rick Hiton & Associates can take a look at your home, evaluating the overall worth of renovations, current condition of the home, and other factors to provide an accurate value that proves you have the ability to cancel PMI payments.

The money that originally went to PMIs can then transfer to the homeowner’s own bank accounts, saving them money while eliminating any forgotten payments that are no longer required.

If you would like more information about how an appraisal can help with PMI removal in the Chicagoland area, contact Rick Hiton & Associates through our online contact form or by phone at 1-847-897-9332, and we can help you get started on the cancellation process.

Located Near Chicago, IL

Our knowledgeable appraisers can help you determine if you meet the requirements of your lender, and help ensure you have sufficient proof to support your case.

We also provide appraisals for many other types of cases, including divorce appraisals, bankruptcy appraisals, financial and estate planning appraisals, and more.

Our team of appraisers has the experience required to meet the needs of many homeowners, depending on their individual needs.