Make Private Mortgage Insurance a Thing of the Past

Beginning in 1999, lending institutions have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) at the point his mortgage balance (for a loan closed past July of that year) reaches less than seventy-eight percent of the purchase price, but not at the time the loan's equity gets to twenty-two percent or higher. (There are some loans that are not included -like some "high risk' loans.) But if your equity reaches 20% (no matter what the original price was), you are able to cancel your PMI (for a loan that past July 1999).

Keep track of payments

Familiarize yourself with your loan statements to keep track of principal payments. You'll want to keep track of the the purchase prices of the homes that are selling around you. If your mortgage is under five years old, it's likely you haven't paid down much principal � it's been mostly interest.

The Proof is in the Appraisal

Once you determine you have reached 20 percent equity, you can start the process of canceling your Private Mortgage Insurance. Contact your lending institution to request cancellation of PMI. The lending institution will require documentation that your equity is high enough. The best proof there is can be found in a state certified appraisal using 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: 8165258000.