Private mortgage insurance, or PMI, typically occurs when someone buys a home without the traditional 20 percent down payment. PMI covers the risk of financing a mortgage with less equity from the buyer. Should the buyer fail to make payments, or the property values decrease, PMI helps the lender mitigate its losses. For most homeowners, PMI mainly represents an unwanted extra cost on their monthly mortgage statement.

If your home loan still has PMI attached, you probably are here as you are trying to sort out when it's time to schedule an appraisal to remove it. Typically PMI remains in effect until the loan balance reflects 80 percent of the value at the time of purchase. A house bought for $500,000, for example, may carry PMI until the loan is paid down to $400,000. The specific terms for each mortgage vary by lender. To remove the PMI you'll need to have the house appraised and submit a formal request to your mortgage holder.

If you believe your home is ready for an appraisal to remove PMI, contact us at Gulf Stream Residential Appraisal today.

Our expert appraisers will be able to help you through the process and offer an honest appraisement of your property's current value