Make Private Mortgage Insurance a Thing of the Past
For loans closed after July 1999, lending institutions are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance gets lower than 78 percent of your purchase price � but not when the borrower earns 22 percent equity. (Certain "higher risk" mortgage loans are not included.) The good news is that you can request cancelation of your PMI yourself (for your loan that closed past July '99), no matter the original purchase price, once the equity rises to twenty percent.
Verify the numbers
Familiarize yourself with your monthly statements to keep a running total of principal payments. Also be aware of the price that other homes are selling for in your neighborhood. If your mortgage is under five years old, chances are you haven't paid down much principal � you have paid mostly interest.
Verify Equity Amount
You can start the process of canceling PMI as soon as you're sure your equity has reached 20%. Contact the lending institution to request cancellation of your Private Mortgage Insurance. The lending institution will require proof that your equity is high enough. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is all the proof you need � and your lender will probably require one before they agree to cancel PMI.
New Millennium Mortgage Co. NMLS: 331173 can help find out if you can eliminate your PMI. Give us a call at (941) 366-5800.
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