Make Private Mortgage Insurance a Thing of the Past
While lenders have been legally required (for loans closed after July '99) to cancel Private Mortgage Insurance (PMI) at the time the loan balance goes under 78% of the purchase price, they do not have to cancel automatically if the borrower's equity is above 22%. (There are exceptions -like some loans considered 'high risk'.) The good news is that you can cancel your PMI yourself (for a mortgage closing past July '99), regardless of the original price of purchase, when the equity reaches twenty percent.
Do your homework
Familiarize yourself with your loan statements to keep track of principal payments. Make yourself aware of the prices of other homes in your immediate area. If your loan is fewer than five years old, it's likely you haven't made much progress with the principal � it's been mostly interest.
Proof of Equity
Once you determine you've reached 20 percent equity in your home, you can start the process of freeing yourself from PMI payments. Contact your mortgage lender to ask for cancellation of PMI. Your lender will ask for proof that your equity is at 20 percent or above. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will document your equity amount � and most lenders require one before they agree to cancel.
America's Money Source can help find out if you can eliminate your PMI. Give us a call at 4078987559.