Goodbye, PMI!

Although lenders have been required (for loans closed past July '99) to cancel Private Mortgage Insurance (PMI) when the loan balance gets under 78% of the price of purchase, they do not have to cancel automatically if the loan's equity is more than 22%. (There are some exceptions -like some loans considered 'high risk'.) But you have the right to cancel PMI yourself (for mortgage loans made past July 1999) when your equity gets to 20 percent, no matter the original price of purchase.

Do your homework

Keep track of money going toward the principal. Find out the selling prices of other houses in your neighborhood. Unfortunately, if you have a recent loan - five years or fewer, you probably haven't begun to pay a lot of the principal: you are paying mostly interest.

Proof of Equity

At the point your equity has risen to the required twenty percent, you are close to stopping your PMI payments, once and for all. Contact your lender to ask for cancellation of your PMI. Your lender will require proof that your equity is high enough. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will document your equity amount � and your lender will probably request one before they agree to cancel.

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