What is PMI insurance?
PMI insurance is an insurance premium that is taken out by a mortgage company that protects the lender in the event of foreclosure. When you purchased your house your lender added PMI to your monthly payment unless you made at least a 20% down payment. This payment is included in your monthly mortgage payment until you have an appraisal that shows your house has increased in value, including additions and improvements, to the point that your loan is 80% of your current house value.
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Does PMI benefit me in any way?
No. This insurance is designed to protect the mortgage company, not you. Once you have achieved 20% equity in your house, however, most mortgage companies will release you of this payment.
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How can I find out if I am paying for PMI?
Call the lender listed on your payment book and ask them if you are currently paying for Private Mortgage Insurance.
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How can I drop my PMI payment?
The first step is to contact us. We will ask you a few questions to see if your home will qualify for the removal of the insurance. There is no charge for this service. If we feel your home qualifies, we will help you submit a written request to your lender in order to initiate the process. After your lender responds to this request, then we will need to set up an appraisal to make sure you have achieved the 20% equity level required for the removal of PMI. Once the appraisal is completed, we will walk you through the rest of the process, provide you with a cover letter requesting the insurance be removed and provide you with a copy of the appraisal to be submitted to your mortgage company.
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How much does an appraisal cost?
We charge $350 for a conventional residential appraisal, payable by cash or check.  Visit our Fee Schedule page for a complete list of services and current pricing.
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Does my mortgage company have to release me from these payments?
No. As there are many factors involved in this decision, there is no guarantee that your mortgage company will release you from paying PMI. However, since you have certain inherent legal rights which encourage them to do so, most mortgage companies will be glad to cooperate. At Ferrier Appraisal Serviecs, we will take all the necessary precautions in our up front assessment to make sure your mortgage company is willing to remove the insurance pending the completed appraisal.
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