Goodbye, PMI!

For loans closed after July 1999, lenders are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance falls under 78 percent of the purchase price � but not when the borrower achieves 22 percent equity. (Some "higher risk" loan programs are not included.) However, you have the right to cancel PMI yourself (for mortgages made past July 1999) at the point your equity gets to 20 percent, no matter the original price of purchase.

Keep track of payments

Keep track of your principal payments. Pay attention to the purchase prices of other homes in your immediate area. You've been paying mostly interest if your closing was fewer than 5 years ago, so your principal probably hasn't lowered much.

The Proof is in the Appraisal

Once you find you have achieved at least 20 percent equity in your home, you can begin the process of canceling your Private Mortgage Insurance. First you will let your lender know that you are requesting to cancel PMI. Your lender will ask for documentation that your equity is high enough. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) documents your equity amount � and almost all lenders require one before they agree to cancel.

CHASE MORTGAGE, Inc. #317430 can answer questions about PMI and many others. Give us a call: 4357556622.