Many homeowners can save thousands of dollars as a result of the current surge in home prices?
It has been in the news, it has been reported here on this blog, and it has been the subject of some great humor. It is the current unprecedented seller's market in real estate. Inventory is extremely low and that is driving prices of homes through the roof! (pun intended)
There are many homeowners taking advantage of rising home values. Let's explore a few ways that you can use the current market to your advantage.
What are the benefits of increasing home values?
If you are carrying Private Mortgage Insurance or PMI, then you may be in luck! PMI is needed on many mortgages for homes where the loan value is greater than 80% of the value of the home. Meaning that if you bought a home and put less than 20% down then you are likely carrying this fee. PMI adds a few hundred dollars to your monthly payment. You can save thousands of dollars by removing this PMI.
One Simple Step To Remove PMI from your mortgage loan.
Fortunately, it is quite simple to remove the PMI. You don't even have to refinance your loan. All you have to do is contact your mortgage company and request a desktop (or drive-by) appraisal of your home. Most mortgage companies don't even charge for this type of service. If your home value has increased enough to lift that ratio of loan to value to 80% then you should be entitled to have that PMI removed!
Check for other savings too...
While you are evaluating your mortgage loan, check to see if you could also benefit from a refinance. Here is a great tool to help you decide if there is a financial benefit to refinancing your loan.
Many of my clients are also taking advantage of their increased home value to take out a home equity line of credit loan. This is called a HELOC and can be useful for taking on home renovations and updates.
I am here when you need me!
Of course, if what you really want to do is buy or sell a home, I would love to help you there! Give me a call!