How to Get Rid of PMI

After examining these methods you will need to then examine your current loan situation, call your lender and petition them for relief form PMI. Your lender may require validation in the form of a new appraisal of the property and this expense will fall upon you the insured. Considering the savings that PMI relief could bring you over a ten or fifteen year period this is an option that you need to seriously consider and research.

Note: If you received your loan prior to the Homeowner's Act of 1998, you may not fully qualify, as the rules governing your situation could be different.

How You Can Pay Off Your Mortgage Faster And Save Thousands Of Dollars

One last approach to doing away with PMI payments, is bi-weekly loan payments, as opposed to the traditional monthly payments. It's simply a matter of math. If you make a payment every two weeks you will have, by the end of the fiscal year, made an extra monthly payment, thirteen, payments in all, not twelve. If your monthly mortgage payment is approximately one thousand dollars, by making the bi-weekly payments, you could save over thirty thousand dollars over the course of the loan, and be free and clear of your mortgage commitment in just over twenty years.

Further, you can employ a payment service to do this for you, or you can choose to do it yourself. Most payment companies will make the bi-weekly payments for you but debiting an account every two weeks and making the payments every four weeks, adding up to the thirteen payments required to make this all work. This type of service will require a start up fee and a monthly fee that are all more than set off by the savings that you will realize.

Note: Whether you make the payments yourself, or use a service, always make certain that the extra funds are applied to the principal amount.

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