Goodbye, PMI!

While lending institutions have been legally obligated (for loans closed after July 1999) to cancel Private Mortgage Insurance (PMI) when the balance dips under 78% of the price of purchase, they do not have to cancel PMI automatically if the borrower's equity is more than 22%. (Certain "higher risk" mortgage loans are excluded.) But if your equity rises to 20% (regardless of the original purchase price), you are able to cancel your PMI (for a mortgage that after July 1999).

Verify the numbers

Keep track of money going toward the principal. Find out the selling prices of other houses in your immediate area. If your loan is fewer than five years old, it's likely you haven't paid down much principal � you have paid mostly interest.

The Proof is in the Appraisal

When you find you've achieved at least 20 percent equity in your home, you can begin the process of getting PMI out of your budget. Contact the lending institution to ask for cancellation of your Private Mortgage Insurance. Lenders ask for paperwork verifying your eligibility at this point. The best proof there is can be found in a state certified appraisal using form URAR-1004 (Uniform Residential Appraisal Report), which is required by most lenders before canceling PMI.

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