The “perfect storm” is here. There are a number of factors that have come together to create the ideal time for some homeowners to say “Bye-Bye PMI”
The factors that are in play are:
- Overall market appreciation
- Unusually low inventory
- Health of the economy
- Buyers willing to pay practically anything to get into a house
- Interest rates that have been at historic lows (until recently)
Current homeowners who may have PMI (Private Mortgage Insurance) could possibly save hundreds if not thousands of dollars over the term of their loan. This is a great opportunity for savvy homeowners to take advantage of their home’s appreciation.
You may be asking, “What does this have to do with me? I’m a real estate agent or a mortgage professional.” While removing PMI may not benefit you, it could benefit your former clients. Those folks who already know you, like you and trust you. You probably already know which of your clients may have had to carry PMI. It’s a great time for real estate agents and mortgage professionals to provide ongoing value to your past clients without “selling” them anything. Call them, email them or text them, whatever you choose. Most importantly, show them that you still have their backs and that you can help them potentially remove PMI and save money. Provide value! Who knows…they may be planning to sell or refi in the near future and, now they are thinking about you.
The procedure for PMI removal can vary from lender to lender. So, be sure that your client checks with their lender to obtain a set of instructions for the process. The general process for PMI removal is pretty simple.
Most lenders require that a request for PMI removal be made in writing. The borrower will have to be in good standing with the lender, with no late or outstanding payments (again, this will vary). The lender will need a current appraisal completed specifically for the purpose of PMI removal (that appraisal from the refi that was done last Fall may not be acceptable). If the appraisal can demonstrate that the borrower’s home has appreciated to the required loan to value limits (check with the lender form their specific limits), PMI should be removed for the remainder of the term.
If you have any questions about PMI Removal or real estate appraisals, please feel free to contact me.
The Coyle Group’s team of Philadelphia Real Estate Appraisers are a leading provider of appraisals for Estate/Probate, Divorce, Bankruptcy, Tax Appeal and Pre-Listing. We also provide “footprint” sketches for determining a more accurate square footage of a property. If you need a guest speaker at your next sales meeting, please give us a call. We would welcome to opportunity to speak to your group and field any appraisal related questions you may have. For more information please visit our website at www.TheCoyleGroupLLC.com You can also contact The Coyle Group at 215-836-5500 or appraisals@coyleappraisals.com
The homeowner was hanging her hat and the potential sale of her property on the Philadelphia public records. Geez. She was very insistent that the other appraiser had no idea what they were doing. The idea that the public records could be wrong never crossed her mind. She’d been living in a house of certain size for 10 years and no one was going to tell her different.
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