Do you pay Private Mortgage Insurance every month? If you purchased a home with less than 20% down, there's a good chance you do, and if your home has appreciated in value recently, you might be able to get rid of it! Although PMI is usually not a large payment each month, eradicating it could save you hundreds, or thousands, a year. 
How can you know if you would qualify to get rid of your PMI? To be able to do that, you must be have a good history of payments with your lender, and have paid down your mortgage to 80% of the loan. However, even if you have not paid off the full 20%, if homes in your area have seen an increase in value, your loan-to-value (LTV) ratio might be enough to rid you of that pesky PMI. When your LTV reaches 78%, your lender is legally required to cancel the PMI for you, but in that 2% lapse, you could be paying unnecessary fees. A current appraisal is the only legitimate means of determining your current LTV-- while there will be a value listed in tax assessments, this number is often out of date or a low estimate.
If you think you could qualify, check with your lender to see if their policies will allow you to choose your own appraiser. At Sacramento Appraisal Group, we have experience in helping clients get rid of their PMI, and we can provide you with a sound, defensible appraisal of your home at Fair Market Value. Call us today at 916-792-7112 to see how we can help you!
