Make Private Mortgage Insurance a Thing of the Past

Beginning in 1999, lenders have been legally required to cancel a borrower's Private Mortgage Insurance (PMI) when his mortgage balance (for a loan closed after July of that year) goes down below seventy-eight percent of the price of purchase, but not when the loan's equity gets to twenty-two percent or more. (There are some loans that are not covered by this law -like some "high risk' loans.) The good news is that you can request cancelation of your PMI yourself (for a mortgage loan that closed past July '99), regardless of the original price of purchase, at the point the equity reaches twenty percent.

Do your homework

Keep track of money going toward the principal. Also be aware of how much other homes are being sold for in your neighborhood. If your mortgage is under five years old, it's likely you haven't paid down much principal � you have paid mostly interest.

Proof of Equity

At the point your equity has reached the desired twenty percent, you are not far away from getting rid of your PMI payments, once and for all. Contact the lender to ask for cancellation of your PMI. The lending institution will require proof that your equity is high enough. The best proof there is can be found in a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), required by most lenders before canceling PMI.

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