Make Private Mortgage Insurance a Thing of the Past
Beginning in 1999, lending institutions have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) when his loan balance (for a loan closed after July of '99) reaches less than seventy-eight percent of the price of purchase, but not at the time the borrower's equity gets to twenty-two percent or more. (The legal obligation does not include some higher risk mortgages.) But if your equity gets to 20% (regardless of the original purchase price), you have the right to cancel PMI (for a mortgage loan that after July 1999).
Keep a record of payments
Study your monthly statements often. Also stay aware of the price that other homes are being sold for in your neighborhood. If your mortgage is under five years old, probably you haven't paid down much principal � you have paid mostly interest.
Verify Equity Amount
You can begin the process of PMI cancelation as soon as you you think that your equity has reached 20%. Call the lending institution to ask for cancellation of your PMI. Next, you will be required to submit documentation that you are eligible to cancel. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will be all the proof you need � and almost all lenders require one before they agree to cancel.
At Trustin Mortgage, LLC, we answer questions about PMI every day. Give us a call: (302) 765-8089.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.