Make Private Mortgage Insurance a Thing of the Past
Beginning in 1999, lenders have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) when his loan balance (for a loan made past July of '99) goes below seventy-eight percent of the price of purchase, but not at the time the borrower's equity reaches twenty-two percent or higher. (Certain "higher risk" mortgage loans are excluded.) The good news is that you can cancel your PMI yourself (for a loan that closed after July '99), no matter the original purchase price, once your equity reaches twenty percent.
Keep track of payments
Analyze your statements often. Also keep track of the price that other homes are purchased for in your neighborhood. Unfortunately, if yours is a new mortgage loan - five years or fewer, you probably haven't begun to pay much of the principal: you have been paying mostly interest.
Proof of Equity
As soon as your equity has risen to the magic number of twenty percent, you are close to stopping your PMI payments, once and for all. First you will tell your lender that you are asking to cancel PMI. The lending institution will request documentation that your equity is high enough. Most lenders ask for a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to verify your equity and eligibility for PMI cancellation.
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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