Goodbye, PMI!

Although lending institutions have been legally required (for loans closed past July 1999) to cancel Private Mortgage Insurance (PMI) at the point the balance dips under 78% of the purchase price, they do not have to cancel automatically if the equity is over 22%. (Certain "higher risk" mortgage loans are not included.) But if your equity rises to 20% (no matter what the original price was), you can cancel the PMI (for a mortgage that past July 1999).

Do your homework

Familiarize yourself with your loan statements to keep a running total of principal payments. You'll want to stay aware of the the purchase amounts of the homes that sell around you. You've been paying mostly interest if you closed your mortgage fewer than 5 years ago, so your principal probably hasn't lowered much.

Verify Equity Amount

Once you think you've reached 20 percent equity, you can begin the process of canceling your Private Mortgage Insurance. You will need to call your lender to let them know that you wish to cancel PMI payments. Then you will be required to verify that you are eligible to cancel. You can acquire documentation of your home's equity by getting a state certified appraisal using form URAR-1004 (Uniform Residential Appraisal Report), required by most lenders before canceling PMI.

CHASE MORTGAGE, Inc. #317430 can answer questions about PMI and many others. Call us at 4357556622.