Goodbye, PMI!

Since 1999, lenders have been legally obligated to cancel a borrower's Private Mortgage Insurance (PMI) when his loan 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 climbs to twenty-two percent or higher. (The legal requirment does not include some higher risk mortgages.) However, if your equity reaches 20% (regardless of the original purchase price), you are able to cancel your PMI (for a mortgage loan that past July 1999).

Verify the numbers

Familiarize yourself with your monthly statements to keep track of principal payments. You'll want to stay aware of the prices of the houses that are selling around you. You've been paying mostly interest if you closed your loan fewer than 5 years ago, so your principal most likely hasn't gone down much.

Verify Eligibility

You can start the process of PMI cancelation when you you think that your equity has reached 20%. You will first tell your lender that you are requesting to cancel PMI. Then you will be asked to submit proof that you are eligible to cancel. Most lenders require 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. Call us at (941) 366-5800.