Make Private Mortgage Insurance a Thing of the Past

Although lending institutions have been legally obligated (for loans closed past July '99) to cancel Private Mortgage Insurance (PMI) at the time the mortgage balance gets under 78% of the price of purchase, they do not have to cancel PMI automatically if the loan's equity is more than 22%. (There are some exceptions -like some loans considered 'high risk'.) The good news is that you can cancel your PMI yourself (for a loan closing past July '99), no matter the original purchase price, once the equity climbs to twenty percent.

Keep a running total of payments

Study your statements often. You'll want to keep track of the the purchase prices of the homes that sell around you. If your loan is fewer than five years old, chances are you haven't paid down much principal � you have been paying mostly interest.

Verify Equity Amount

Once your equity has reached the desired twenty percent, you are close to canceling your PMI payments, for the life of your loan. You will first notify your lender that you are asking to cancel PMI. Next, you will be required to verify that you are eligible to cancel. You can acquire documentation of your home's equity by getting a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), required by most lenders before canceling PMI.

Debbie Oliver NMLS License #248252, America's First Choice Mortgage, NMLS License #279234 can help find out if you can eliminate your PMI. Give us a call: 2146635355.