Canceling Private Mortgage Insurance

For loans made after July 1999, lending institutions are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance gets lower than 78 percent of your purchase amount � but not when the borrower earns 22 percent equity. (Certain "higher risk" morgages are not included.) But you are able to cancel PMI yourself (for loans made past July 1999) at the point your equity reaches 20 percent, no matter the original purchase price.

Keep a running total of payments

Familiarize yourself with your monthly statements to keep your eye on principal payments. Also keep track of how much other homes are purchased for in your neighborhood. You've been paying mostly interest if you closed your mortgage fewer than 5 years ago, so your principal probably hasn't been reduced by much.

The Proof is in the Appraisal

As soon as your equity has reached the required twenty percent, you are not far away from canceling your PMI payments, for the life of your loan. Contact your lender to ask for cancellation of your PMI. Lending institutions request documentation verifying your eligibility at this point. You can get documentation of your equity by getting a state certified appraisal using form URAR-1004 (Uniform Residential Appraisal Report), required by most lending institutions before canceling PMI.

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