Make Private Mortgage Insurance a Thing of the Past
Beginning in 1999, lenders have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) at the point his mortgage balance (for loans made past July of that year) reaches less than seventy-eight percent of the purchase price, but not at the point the borrower's equity climbs to twenty-two percent or higher. (There are exceptions -like some loans considered 'high risk'.) The good news is that you can cancel your PMI yourself (for a mortgage that closed past July '99), without considering the original purchase price, when your equity reaches twenty percent.
Keep a running total of payments
Review your statements often. Also keep track of how much other homes are purchased 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 paid mostly interest.
Verify Equity Amount
At the point you determine 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 payments. Next, you will be required to submit documentation that you are eligible to cancel. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is all the proof you need � and your lender will probably request one before they agree to cancel.
Universal Lending Services, Inc. can help find out if you can eliminate your PMI. Give us a call: (337) 264-9990.
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.