Make Private Mortgage Insurance a Thing of the Past
Since 1999, lenders have been legally required to cancel a borrower's Private Mortgage Insurance (PMI) when his loan balance (for loans closed after July of '99) reaches less than seventy-eight percent of the price of purchase, but not at the time the borrower's equity gets to over twenty-two percent. (Some "higher risk" loan programs are excluded.) However, if your equity rises to 20% (no matter what the original purchase price was), you can cancel PMI (for a mortgage closed after July 1999).
Verify the numbers
Keep a running total of your principal payments. Also stay aware of the price that other homes are purchased for in your neighborhood. If your loan is under five years old, probably you haven't made much progress with the principal ? it's been mostly interest.
Verify Equity Amount
Once your equity has risen to the required twenty percent, you are close to canceling your PMI payments, once and for all. You will first let your lending institution know that you are asking to cancel your PMI. Lenders ask for proof of eligibility at this point. Usually lenders require a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to verify your equity and eligibility for canceling PMI.
At CHASE MORTGAGE INC #317430, we answer questions about PMI every day. Give us a call: 435-755-6622.