Make Private Mortgage Insurance a Thing of the Past
Since 1999, lenders have been legally obligated to cancel a borrower's Private Mortgage Insurance (PMI) at the point his mortgage balance (for loans closed past July of '99) goes under seventy-eight percent of the price of purchase, but not when the borrower's equity gets to twenty-two percent or more. (A number of "higher risk" mortgage loans are not included.) However, you can actually cancel PMI yourself (for loans closed past July 1999) once your equity reaches 20 percent, without consideration of the original purchase price.
Verify the numbers
Keep track of money going toward the principal. You'll want to be aware of the the purchase prices of the homes that sell around you. If your loan is fewer than five years old, probably you haven't paid down much principal � it's been mostly interest.
As soon as your equity has reached the magic number of twenty percent, you are just a few steps away from getting rid of your PMI payments, for the life of your loan. First you will tell your lender that you are requesting to cancel your PMI. Then you will be required to submit documentation that you have at least 20 percent equity. You can acquire proof of your equity by getting a state certified appraisal using form URAR-1004 (Uniform Residential Appraisal Report), which is required by most lending institutions before canceling PMI.
New Millennium Mortgage Co. NMLS: 331173 can answer questions about PMI and many others. Give us a call: (941) 366-5800.
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