I just want to talk today about a money saving tip. Potentially having PMI removed early from your mortgage.
Here's the video on this topic. Don't forget to Like and Subscribe!
For a lot of people who have bought in the last few years, they didn't put 20%
down, and therefore have PMI.
Now, PMI can come off your loan once you either have:
•20% paid on your loan
•20% equity from the value of your home.
Well, we've seen 25% price growth in Las Vegas just in the past year. So, basically anyone who's bought a home in Las Vegas a year ago or more, has at least 20% of equity in their home!
As nice as it might be, the lender won't automatically drop that on their own. They just basically base that off of when your loan is set to hit that point. Years into the loan- 5, 6, 7 years. When your monthly payment, just your basic monthly payment, and not a penny more. When that date is set to hit, that's when they'd be set to review to have PMI removed.
You can speed that process up by being in your home for 2 years, and then contacting your lender. And then you will have to pay for an appraisal.
But at that time, given the price growth we've seen in Las Vegas, even in the last year, and two years. Virtually, everybody here is going to be eligible to have PMI dropped from their monthly mortgage payment. Which will save everyone a hundred, two hundred, three hundred dollars a month. Depending on the value of their home. It's not going to happen unless you contact your lender. Again, you have to remember, you have to be in the home for at least two years. At the two year mark, that's a lot sooner for most people, than waiting for it to come off automatically via your lender.
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Until next time