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 mortgage balance (for a loan closed after July of that year) goes beneath seventy-eight percent of the price of purchase, but not at the point the borrower's equity reaches twenty-two percent or higher. (There are some exceptions -like some loans considered 'high risk'.) But you have the right to cancel PMI yourself (for mortgage loans made past July 1999) once your equity gets to 20 percent, without consideration of the original price of purchase.

Do your homework

Study your monthly statements often. Make yourself aware of the selling prices of other homes in your immediate area. If your loan is under five years old, it's likely you haven't made much progress with the principal � it's been mostly interest.

Proof of Equity

You can begin the process of canceling PMI as soon as you calculate that your equity has reached 20%. You will first let your lender know that you are requesting to cancel your PMI. Next, you will be asked to submit documentation that you have at least 20 percent equity. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will be all the proof you need � and your lender will probably require one before they agree to cancel.

New Millennium Mortgage Co. NMLS: 331173 can help find out if you can eliminate your PMI. Call us: (941) 366-5800.

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