Although private mortgage insurance may have allowed you to purchase a condo, there will come a time when this added monthly expense will no longer directly benefit you. You are, ultimately, your own financial advisor, and even the smallest expenses should be eliminated if at all possible. By continuing to carry insurance that is no longer required or needed, you decrease the amount of money you have available in your pocket or your bank account.
Most lenders require a real estate appraisal by a state-certified appraiser as the primary proof required to eliminate unnecessary PMI. The exact rules for canceling PMI are largely in the hands of your lender and the company from whom your lender buys mortgage insurance. Some baseline rules about cancellation were established by the federal Homeowners’ Protection Act of 1998. This law, however, doesn’t offer consumers as much protection as its name would suggest, and it applies only to people who purchased their homes after July 29, 1999.
Even if a condo owner doesn’t have enough equity, Congress recently passed a law which allows PMI to be deductible from your taxes. This law is retroactive to 2012 so many recent condo purchasers should be able to benefit it. There are exceptions and income limits, so a tax professional should be contacted for specifics.
Contact your lender to find out the appropriate PMI cancellation procedures. It is best to write a letter to your mortgage lender and formally request guidelines. Lenders will often require an appraisal by a state-certified appraiser as reassurance that the 20% required equity on your house has been met. Let us at Atlanta Condo help you remove your PMI.
At Atlanta Condo Appraiser, you will find that as your local condo appraiser we work hard to provide you not only appraisal services in Atlanta and the surrounding areas, but information that can help you as a buyer, seller, or attorney be more knowledgeable about condo appraising in and around Atlanta.
As a trusted Georgia condo appraiser since 2001, we will provide you with the service, details, and speedy condo appraisal reports many of our clients have come to expect. We may be able to help you reduce your mortgage payment. Give us a call today or contact us via email.