PMI Removal

PMI is not necessary once you have 20% equity in your house.

If you been paying Private Mortgage Insurance (PMI) premiums every month with your mortgage payments, see if you can put some of that money back into your own pocket.

The Home Owner Protection Act, effective July 29, 1999 requires an annual notification of PMI removal. Automatic notification of cancellation will only apply to loans after July 29, 1999. Homeowners must request cancellation on loans originated before this date.

How Much Money Will You Save?

PMI rates will usually vary between $0.35 - $0.80 per $100, depending on the amount of your loan. Contact your lender for the exact amount you will be saving.

Estimated Monthly ( PMI ) Private Mortgage Insurance Premium
Original Loan Amount
5% Down
10% Down
15% Down
$100,000
$65/mo.
$43/mo.
$27/mo.
$150,000
$98/mo.
$65/mo.
$40/mo.
$200,000
$130/mo.
$87/mo.
$53/mo.






Here are some steps to remember when trying to eliminate PMI:

Contact your lender (mortgage company) and ask what their procedure is for removing Private Mortgage Insurance.

Ask your lender if they will accept an appraisal performed by a Texas licensed appraiser. If so,
contact us for to provide you and your mortgage company with an appraisal of your property.



© 2002 Graham & Associates, Inc.