Dear Visitor,

If you have owned your home for more than five years, here is a tip that might save you thousands of dollars. Homes purchased with a loan greater than 80% require Private Mortgage Insurance, PMI. The premium is typically one to two percent of the mortgage at closing and approximately 0.25 to 0.5% per month for the renewals.

When your equity has increased to 20%, in most cases, you are no longer required to have the PMI but you will have to petition them to have it removed. One way for your equity to increase is to reduce the principal down to 80% of the original purchase price. However, this usually takes 12 or more years unless you are making additional principal contributions.

The most common way for your equity to increase is for the value to increase. The difference between the unpaid balance and what it is worth is your equity. The mortgage company may require a new appraisal to prove the current worth but before you spend the money, ask them if they'll accept the assessed value.

Just give us a call and we will supply you with the assessed value and sales of comparable homes in your area. If there is anything else we can do for you, please let us know.

Truly,

Real Jersey City Team