Make Private Mortgage Insurance a Thing of the Past

For loans made after July 1999, lenders are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the balance of the loan goes below 78 percent of your purchase amount � but not when the loan reaches 22 percent equity. (Some "higher risk" loan programs are not included.) However, if your equity rises to 20% (regardless of the original purchase price), you have the legal right to cancel PMI (for a loan closed after July 1999).

Verify the numbers

Review your loan statements often. Also stay aware of the price that other homes are being sold for in your neighborhood. Unfortunately, if you have a recent loan - five years or fewer, you likely haven't had a chance to pay a lot of the principal: you have been paying mostly interest.

Verify Eligibility

As soon as your equity has reached the magic number of twenty percent, you are not far away from getting rid of your PMI payments, once and for all. You will need to contact your mortgage lender to let them know that you want to cancel PMI payments. Lending institutions ask for proof of eligibility at this point. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) documents your equity amount � and almost all lenders request one before they agree to cancel.

CHASE MORTGAGE, Inc. #317430 can help find out if you can eliminate your PMI. Call us: 4357556622.