San Diego PMI Removal
Before we consider San Diego PMI removal, we first have to understand what PMI is.
If you buy a house and pay less than 20% down payment then you will have to pay PMI, Private Mortgage Insurance. PMI is an extra fee on top of your regular, monthly mortgage payments. Most people wish to stop paying PMI as soon as possible. There are two ways to accomplish this.
One way to cancel PMI is to pay down your mortgage enough so that you have effectively reached the the 20% cut off. When your loan-to-value ratio drops below 80% (you owe less than 80% of the original appraised value of the house) then you can ask your lender to cancel PMI.
A second way in which you can cancel PMI payments is if the value of your house decreases so that the amount you have already paid (down payment plus monthly payments) is at the 20% cutoff. In other words, the value of your house has decreased, so you have effectively paid the required 20%.
If you think your house has decreased in value, and you are currently paying PMI, it might be time to have your house appraised to determine if you are qualified to cancel PMI.