Colorado Springs Mortgages – Getting Rid of PMI
I’ve been in the Colorado Springs home loan business for 18 years, and have seen the market cycle a couple of times. As a lender, I’ve helped residents of Colorado Springs secure home financing such as VA Loans when the market has been hot and when the market has been cool. Either way, there’s never a bad time to own your own home. It’s a good idea as a home owner to watch out for certain events to occur such as when the market heats up and market home prices increase. By being aware of the local housing market, and taking advantage of them, you can move ahead of others on the curve of paying off your house and making the most of your home’s equity.
When home prices increase, we as homeowners will experience equity jumps in our local housing market. If you purchased your home with an FHA home loan, or a Conventional home loan such as Fannie Mae or Freddie Mac, you may be paying mortgage insurance when you don’t have to. Mortgage insurance is also known as PMI, and generally once your home’s value is more than 20% than what you still owe on your mortgage, you are eligible to refinance to a mortgage without PMI, saving you a ton of money.
If you did not put down 20% or more on your home, then you are paying mortgage insurance. This insurance that is added to your home payment is an insurance policy that is required by the lender, but it covers the lender’s liability, and does not cover you for anything. Bottom line is you have to pay for it, but there is no benefit to you, so it’s best to get rid of it as soon as you are eligible.
Times like now are a good time to review your mortgage, see if you are paying for something you don’t need, and get it removed either by refinancing or talking to the right people to have it removed.
Call the mortgage experts at Fidelity Mortgage Solutions and we’ll be happy to give you a free review of your mortgage and give you the correct advice for your mortgage and home’s equity.