The FHAPROS can help you negotiate with your mortgage lender the removal of Private Mortgage Insurance (PMI). The Homeowner’s Protection Act of 1998 outlines the circumstances under which a mortgage lender must remove the costly insurance premium that only covers the lender in case of default. PMI is required when the down payment or equity in the property is less than 20%.
We work with the lender to ensure strict compliance with the federal law that was passed because many mortgage lenders were not allowing the removal of the insurance when it was clear that the homeowner had accumulated a twenty percent equity percentage.
Mortgage lenders like to steer a borrower to refinance to remove the PMI insurance. In most cases, this is unnecessary. Refinancing is an expensive, tedious, and time-consuming process, which adds years to the original mortgage term.
As part of the process, the FHAPROS orders a full residential appraisal using our nationwide network of appraisers. Armed with this report, we handle the entire process from beginning to end. There are a number of remedies in the event that the lender does not agree with our opinion of value. You as the homeowner have to do nothing but wait to have your payment reduced possibly hundreds of dollars a month.
If you would like to have an assessment of your property and it’s value for purposes of PMI removal, click here.