Goodbye, PMI!

While lenders have been legally required (for loans closed past July '99) to cancel Private Mortgage Insurance (PMI) when the balance gets below 78% of the purchase price, they do not have to cancel automatically if the equity is more than 22%. (Certain "higher risk" loan programs are excluded.) However, you are able to cancel PMI yourself (for mortgage loans closed after July 1999) when your equity rises to 20 percent, regardless of the original purchase price.

Do your homework

Analyze your monthly statements often. You'll want to stay aware of the prices of the homes that sell in your neighborhood. If your loan is under five years old, probably you haven't paid down much principal � it's been mostly interest.

Proof of Equity

As soon as your equity has reached the required twenty percent, you are close to getting rid of your PMI payments, once and for all. Call the mortgage lender to ask for cancellation of your Private Mortgage Insurance. The lending institution will require proof that your equity is high enough. The best proof there is can be found in a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), required by most lending institutions before canceling PMI.

America's Money Source can help find out if you can eliminate your PMI. Call us at 4078987559.