Goodbye, PMI!

For loans made since July 1999, lending institutions are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance gets below 78 percent of your purchase price � but not at the point the loan reaches 22 percent equity. (This law does not apply to a number of higher risk mortgages.) However, if your equity reaches 20% (regardless of the original price of purchase), you have the legal right to cancel PMI (for a mortgage loan that after July 1999).

Keep a running total of payments

Study your statements often. Find out the purchase prices of other houses in your neighborhood. You are paying mostly interest if you closed your mortgage loan fewer than 5 years ago, so your principal most likely hasn't lowered much.

Verify Eligibility

When you think you've reached 20 percent equity, you can start the process of freeing yourself from PMI payments. You will need to contact your lending institution to let them know that you wish to cancel PMI payments. The lending institution will ask for documentation that your equity is at 20 percent or above. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is all the proof you need � and almost all lending institutions will require one before they'll cancel PMI.

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