Stop Paying Mortgage Insurance!

75% of all people with Mortgages are paying Mortgage Insurance (PMI).

You are probably paying $40 - $100 per month in Mortgage Insurance that was set up when you first bought your house.

A 1998 federal law requires lenders to allow you to drop your Mortgage Insurance!

To drop your PMI, all you need is an appraisal done on your house that shows you have 20% equity. You are allowed to include increases in property values, improvements, additions, swimming pools, etc.

Frequently Asked Questions

What is Mortgage Insurance (also known as PMI)?

PMI is an insurance premium that is taken out by a mortgage company that protects the lender in the event of foreclosure-but don't be fooled; this has nothing to do with protecting the borrower.  When you purchase your house your lender added mortgage insurance, also called Private Mortgage Insurance (PMI), to your monthly payment unless you made at least a 20% down payment.  This payment is based on the original mortgage amount and is paid as part of your monthly mortgage payment until you have an appraisal that shows that your house has increased in value, including additions and improvements to the point that your loan is 80% of your correct house value.

What is Equity?

Equity is the difference between the value of your home and the mortgage balance (i.e., If your home is worth $100,000 and your mortgage balance is $80,000, then your equity is $20,000).

How do I drop my mortgage insurance?

1. Contact your local appraiser. The only way to drop your PMI is to have an appraisal that shows that your balance is 80% of your home's current market value.   The only way to find out if your house will appraise to that amount is to contact your local appraiser. It's that simple.

2. Send your lender a copy of the appraisal and request to have your PMI dropped.

3. Enjoy having a lower mortgage payment.

Who can do the appraisal?

You must have a state certified appraiser do the appraisal -- no other professional can provide this information.

What is the cost of an appraisal?

Not much compared to the savings you can soon realize.  Appraisal costs can vary in different areas and with special houses. However, typically a residential appraisal will only cost between $300 and $500. Call or e-mail us for a quote.

How much is my Mortgage Insurance?

The only way to find out is to call your lender's customer service representative. However, typically the cost is $0.38 - $0.78 per $100 of your loan amount. See following examples:

MONTHLY PMI COSTS
Original Down Payment

When will the Mortgage company reduce my payments?

Typically, it only takes a few weeks for your lender to drop your mortgage insurance and for you to start saving money.

Is my lender required by law to drop my PMI?

Yes, as long as you have an appraisal that shows you have a 80% loan to value.

Shamrock Appraisals, Inc.
5114 Pt Fosdick Dr NW #E PMB 1
Gig Harbor, WA 98335-1733
(253) 851-6611 (Office) (253) 851-6627 (Fax)