Make Private Mortgage Insurance a Thing of the Past
For loans made after July 1999, lending institutions are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the balance of the loan goes lower than 78 percent of your purchase price � but not at the point the borrower achieves 22 percent equity. (The legal requirment does not cover a number of higher risk mortgages.) The good news is that you can cancel your PMI yourself (for your loan closing past July '99), without considering the original price of purchase, after the equity climbs to twenty percent.
Verify the numbers
Familiarize yourself with your mortgage statements to keep a running total of principal payments. Also be aware of how much other homes are purchased for in your neighborhood. You've been paying mostly interest if you closed your mortgage loan fewer than 5 years ago, so your principal probably hasn't lowered much.
The Proof is in the Appraisal
You can start the process of canceling your PMI at the time you you think that your equity reaches 20%. Call your mortgage lender to ask for cancellation of your PMI. Lending institutions require proof of eligibility at this point. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will document your equity amount � and your lender will probably request one before they agree to cancel.
Executive Lending Group, LLC can help find out if you can eliminate your PMI. Give us a call at (816) 525-8000 & (81.
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.