Tired of high monthly mortgage payments due to mortgage insurance? Refinance your mortgage to reduce or remove mortgage insurance from your payments!
Refinance and Lower Your Monthly Mortgage Payments
Mortgage Insurance adds extra fees to your monthly mortgage payments which can end up costing you thousands of dollars overtime! If you’ve been paying into your mortgage for a while or your home has appreciated, you may have enough equity in your home to reduce or even entirely eliminate your Mortgage Insurance.
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What is Private Mortgage Insurance?
Private Mortgage Insurance (PMI) is a type of mortgage insurance that is required on to some home loans as a safety measure for a lender. It’s an additional fee that is added on to a borrower’s monthly mortgage payment. Lenders will typically require PMI if a borrower’s loan-to-value ratio (LTV) is higher than 80%, meaning they have less than 20% of equity in their home. Once you have accumulated more home equity, you may be able to refinance and eliminate the requirement for PMI.
Frequently Asked Questions
Why Should I Refinance to Remove Mortgage Insurance?
If you’re looking for a way to lower your mortgage payments, reducing or entirely removing the mortgage insurance monthly payment by refinancing can be an effective way to eliminate added. You may also want to consider refinancing your mortgage to remove MI if the value of your home has increased in the last few years.
What are the Benefits of Refinancing to Remove Mortgage Insurance?
- Saving More Monthly by Lowering Your Mortgage Payments
- Getting a Lower Interest Rate
- Mortgages with lower down payments often have higher interest rates because the loan is considered ‘riskier’ for lenders. If you qualify for a Conventional Loan and have at least 20% equity built in your home, you may have a lower interest rate.
What are the Disadvantages of Refinancing to Remove Mortgage Insurance?
- Costs Associated with Refinancing
- Appraisal Fees
- Closing Costs
- Longer Loan Term
- When you refinance your mortgage, you will get a new interest rate and a new loan term. If you are currently in year 5 of a 30-Year mortgage, refinancing into a new 30-Year mortgage will take you back to year 1.
What are the Requirements to Refinance?
- Requirements for refinancing to remove mortgage insurance will vary depending on the mortgage loan you currently have and your financial situation.
- FHA Loans will always require some time of mortgage insurance, so to remove FHA Mortgage Insurance, you will have to qualify for a different type of mortgage loan, typically a conventional mortgage.
Do I Have to Get an Appraisal to Refinance to Remove Mortgage Insurance?
Yes! You will typically need to get an appraisal to refinance your mortgage regardless of loan type.
Are There Closing Costs Associated with Refinancing?
Yes, there are closing costs associated with refinancing your mortgage.
What are Current Refinance Rates?
Your exact Refinance rates depend on the interest rate you qualify for and the term you select. Contact us to review your options and calculate your payment
What is the First Step in Refinancing My Mortgage?
Because everyone has their own unique situation, we recommend speaking to a loan advisor about your options as your first step. Fill out the form on this page for a free consultation with one of our licensed loan advisors to learn about what documentation and qualifications you may need!