Appraisal to Remove Private Mortgage Insurance

What is PMI?

PMI stands for Private Mortgage Insurance, a standard abbreviation in the realm of mortgages. This supplementary policy safeguards the lender in scenarios where a borrower faces difficulties repaying the loan, and the home’s value is lower than the outstanding loan balance. Once you’ve attained 20% equity in your home through a combination of appreciation and principal payments, you have the option to request the removal of PMI.

When Can You Get Your PMI Removed?

Even if your mortgage balance hasn’t reached the specified legal limits, it’s wise to initiate the process of PMI cancellation once you suspect your home’s equity has hit the 20% equity mark. The increase in your home’s value may stem from local property appreciation or renovations and additions you’ve undertaken. However, demonstrating these value-based equity gains to your lender can be challenging, and some lenders may impose a minimum waiting period (typically around two years) before approving PMI cancellation on this basis. Assuming you have a commendable payment history and adhere to your mortgage terms, you can request an evaluation to confirm that the property’s value hasn’t decreased, and there are no additional liens (such as a second mortgage). Make sure to check with your mortgage lender to see if you can hire an independent appraiser or not. Meeting these conditions obliges the lender to approve your PMI cancellation request, thus it will require an appraisal.

Our appraisers serve homeowners throughout the Houston area, including Harris, Montgomery, Fort Bend, Brazoria, and Chambers counties, for PMI removal appraisals.