A few months back, we put together an article highlighting ways you could remove your Private Mortgage Insurance (PMI) from your mortgage payment. We are thrilled to report at least one known success story from it. Even more, the buyers allowed us to share it with everyone!
Our clients purchased their home in April 2017 for $269,000. The home was overall in good shape, but in need of some updating throughout. As a purchase strategy, we negotiated a large ($7,000) credit to help them retain some cash and invest that into improving the home. After closing, they lined up some projects that they could afford. This included a kitchen renovation, attic insulation, and HVAC replacement. In total, they spent around $40,000 on the home.
Fast forward a little over a year. After seeing our PMI article, they reached out and picked my brain. They wanted to know more about the process and what their home might be worth. The result of our discussion was to definitely petition the lender for removal. After moving forward, their home was appraised by the bank for $360,000!! Needless to say, the PMI was removed, which is saving them almost $1,000 / year!
Not only is this a great example of how to successfully remove PMI, but also shows there can be a significant value-add proposition for the right properties. This home was overall very solid, had a newer roof and windows, and wasn’t urgently in need of major repair. After guiding our clients through what could be done to make it their dream home, they were sold!
Couldn’t be happier with the outcome for them! Please don’t ever hesitate to reach out should you want to know about this process, or have successfully removed your PMI!