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) when his loan balance (for a loan made past July of '99) reaches less than seventy-eight percent of the purchase price, but not when the loan's equity reaches twenty-two percent or higher. (The legal obligation does not apply to certain higher risk mortgages.) But if your equity gets to 20% (regardless of the original purchase price), you have the legal right to cancel your PMI (for a loan closed past July 1999).
Keep a running total of payments
Keep track of your principal payments. Also stay aware of what other homes are selling for in your neighborhood. If your mortgage is fewer than five years old, probably you haven't greatly reduced principal � it's been mostly interest.
Proof of Equity
You can start the process of PMI cancelation at the time you're sure your equity has reached 20%. Call the lender to ask for cancellation of PMI. Next, you will be required to verify that you have at least 20 percent equity. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will be all the proof you need � and almost all lenders will require one before they agree to cancel.
Executive Lending Group, LLC can help find out if you can eliminate your PMI. Call us: 8165258000.
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