Make Private Mortgage Insurance a Thing of the Past
While lenders have been required (for loans closed after July 1999) to cancel Private Mortgage Insurance (PMI) at the point the mortgage balance gets below 78% of the price of purchase, they do not have to take similar action if the borrower's equity is above 22%. (Some "higher risk" loan programs are not included.) But if your equity rises to 20% (no matter what the original purchase price was), you have the right to cancel PMI (for a mortgage loan closed past July 1999).
Keep track of payments
Review your statements often. Make yourself aware of the purchase prices of other homes in your immediate area. If your mortgage is under five years old, chances are you haven't paid down much principal � it's been mostly interest.
Proof of Equity
You can begin the process of canceling your PMI at the time you determine your equity has risen to 20%. Contact your mortgage lender to request cancellation of your PMI. Then you will be asked to verify that you are eligible to cancel. The best proof there is can be found in a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), required by most lenders before canceling PMI.
Chase Mortgage can answer questions about PMI and many others. Give us a call at 435-755-6622.