Ep. 35 - How to Remove Private Mortgage Insurance (The Right Way)
The next 15 minutes could save you tons and improve your financial planning! In this episode, I dive into private mortgage insurance (PMI). PMI is an insurance policy for lenders who require borrowers with loans over 80% to have additional protection. But what happens when it comes time to remove PMI from a home loan? I break down the payment schedule, the release date given at closing, and what to do if you want to accelerate the process. I’ll also give you the inside scoop on how Fannie Mae and Freddie Mac’s UCDP model can provide day-one evaluations of properties without needing an appraisal.
Join me and explore strategies for private mortgage insurance (PMI) removal!
[00:01 - 03:11] An intro to what PMI is, why it’s essential to be able to navigate it, and what the elimination process can look like
[03:12 - 07:02] Remove your PMI sooner: how to accelerate the process and protect you as the borrower, step-by-step
[07:03 - 10:50] Taking advantage of different strategies and models to remove PMI quickly and affordably
[10:51 - 15:21] A look at the inner workings of a loan, who it’s really benefitting, and how to protect yourself during the process
Quotes:
"What is new is the notion and the misnomers of how to get rid of [PMI]. I think a lot of buyers are told, unfortunately, ‘Hey, after one year, you can get rid of it.’ And that's just bad advice." - Quinton Harris
"The actual idea of the appraisal is to protect the lender, by the way. All appraisals in every transaction are there to protect the lender. They're never there for the buyer or the seller. That's a big misnomer." - Quinton Harris
“Understand the rules of engagement, because understanding that will help prep you for budgeting and expectations being met correctly as you move into your goal setting for the next year.” - Quinton Harris
Resources Mentioned:
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Bank of England is a nationwide lender that takes the time to understand your needs and structure the right mortgage for you and your family. Find your local branch at https://www.boemortgage.com/.
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