home equity

[bct]

If I oringally put $50,000 down on a $500,000 home (and am paying PMI), but the home value is now $600,000, can I stop paying PMI once it is appraised? Is there a specific process to follow?

[Lyricb]

Contact your lender and see what their procedures are. Some will simply take the PMI off once you hit 20% equity, although my guess is that some less reputable lenders will try to get you to refinance to take it off.

[Raquelita]

I would like to know the answer to this too! Home value rises quickly in our area and we hate paying PMI.

[Gen3]

All lenders have a different process. Give yours a call, it's a question that some overlook when they're looking for a competitive loan.

[clueless]

It's a bit far off for me yet buying a house, but can someone elaborate for me what PMI is? Might sound like a bit of a 'duh' question, but input would help. Thanks a lot.

[chrissie1101]

PMI is private mortgage insurance basically it is a life insurance on the mortgage. If someone on the mortgage dies, the mortgage is covered. I think its a good idea, you just never know.

[belle]

if PMI is a life insurance on a mortgage, why the question of when it should be stopped or when it reaches 20% of payment?...it is supposed to be life...so long as the mortgage exists so does the PMI.

[Nasika]

What are the benefits of home equity?

[Rose_martin]

you have a great information concerning to the insurance,i respect your knowledge ,but i also want to share some information towards the insurance .that is what actually insurance means,why often people doing insurance of home ,and other things
Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company selling the insurance. The insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

[marsh]

Hello,
This was the right thing that you have done.
I don’t think that you were wrong.
All the best!