Goodbye, PMI!

Since 1999, lending institutions have been legally obligated to cancel a borrower's Private Mortgage Insurance (PMI) at the point his loan balance (for loans made past July of '99) reaches less than seventy-eight percent of the purchase price, but not when the borrower's equity reaches twenty-two percent or more. (Some "higher risk" morgages are excluded.) The good news is that you can request cancelation of your PMI yourself (for a mortgage loan closing after July '99), no matter the original purchase price, at the point your equity reaches twenty percent.

Keep a record of payments

Familiarize yourself with your mortgage statements to keep track of principal payments. Find out the prices of other homes in your neighborhood. You are paying mostly interest if your loan closed fewer than 5 years ago, so your principal most likely hasn't gone down much.

Proof of Equity

Once you find you've reached 20 percent equity, you can begin the process of getting PMI out of your budget. You will first tell your lender that you are asking to cancel PMI. Lenders request documentation verifying your eligibility at this point. The best proof there is can be found in a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), required by most lending institutions before canceling PMI.

Executive Lending Group, LLC can help find out if you can eliminate your PMI. Call us at 8165258000.