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) at the point his mortgage balance (for a loan closed past July of '99) reaches less than seventy-eight percent of the price of purchase, but not at the point the borrower's equity gets to twenty-two percent or more. (This law does not apply to certain higher risk mortgages.) However, you have the right to cancel PMI yourself (for loans closed past July 1999) once your equity rises to 20 percent, regardless of the original purchase price.
Verify the numbers
Keep track of money going toward the principal. Also stay aware of what other homes are being sold for in your neighborhood. If your loan is fewer than five years old, it's likely you haven't paid down much principal � you have been paying mostly interest.
Verify Equity Amount
Once you find you've reached 20 percent equity in your home, you can begin the process of canceling your Private Mortgage Insurance. You will need to notify your mortgage lender that you want to cancel PMI. Lenders require proof of eligibility at this point. Most lenders ask for a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to verify your equity and eligibility for canceling PMI.
America's Money Source can answer questions about PMI and many others. Give us a call: 4078987559.