Find out how you can get rid of your mortgage insurance without refinancing.
Got mortgage insurance or private mortgage insurance on your loan? Take a quick look at this article- there may be ways of getting rid of your mortgage insurance without having to refinance your loan. And there are ways of doing that without even taking a ton of time.
First, reach out to your lender
The first thing I would do is reach out to your lender and find out the conditions of your mortgage insurance. For example, if you have an FHA loan and you put a minimum down payment when you got your FHA loan, it may be that you have permanent mortgage insurance on your loan, and USDA- same thing. That permanent mortgage insurance means until you refinance, you’re kind of stuck with the mortgage insurance for the full term of your loan. So if you have a 30 year loan, it’s going to last for 30 years. Conventional loans tend to have a time where the mortgage insurance drops off, but there are times where you can actually petition to have that removed early.
If home values have gone up a lot, or if you’ve paid down your balance a lot, there are ways of petitioning to remove that mortgage insurance. Sometimes all it takes is a call to your current servicer (the person you’re making your payments to) to find out the conditions of your mortgage insurance. So that’s definitely something I would do if I had mortgage insurance right now- I would check in with my servicer and find out the conditions of the release of my mortgage insurance, and push that a little bit.
When does it make sense to refinance?
Now, there are times where it makes more sense to refinance, instead of calling your servicer or releasing the mortgage insurance. For example, let’s say the interest rates are lower right now than the rate you have on your loan. Well, then you can refinance, lower your rate, and potentially remove the mortgage insurance.
If home prices or home values have gone up and you can get both of those done at once, you can have a double positive effect by that refinance. You can get rid of the mortgage insurance and lower your interest rate, which could potentially lower your monthly payment.
So there are times when it’s best to refinance. And we see that a lot right now with these really, really low rates. If you reach out to us, we can do a consultation with no obligation, and we’ll look over your situation. We could even see what kind of mortgage insurance you have right now and give you some tips and pointers on what to expect from your current servicer. But then we can also help you see if there is a way to reduce your interest and rate your payments, along with maybe getting rid of your mortgage insurance. To take a look at everything together, just reach out and we’d be happy to do that for you!
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