Make Private Mortgage Insurance a Thing of the Past
While lending institutions have been legally obligated (for loans closed past July '99) to cancel Private Mortgage Insurance (PMI) when the mortgage balance gets below 78% of the price of purchase, they do not have to cancel automatically if the borrower's equity is over 22%. (There are some exceptions -like a number of "high risk' loans.) But you have the right to cancel PMI yourself (for loans made past July 1999) at the point your equity rises to 20 percent, regardless of the original price of purchase.
Verify the numbers
Keep track of each principal payment. Make yourself aware of the prices of other homes in your immediate area. Unfortunately, if yours is a new mortgage loan - five years or fewer, you probably haven't had a chance to pay a lot of the principal: you are paying mostly interest.
Proof of Equity
Once your equity has risen to the desired twenty percent, you are not far away from canceling your PMI payments, once and for all. You will need to notify your mortgage lender that you wish to cancel PMI payments. Your lender will request proof that your equity is high enough. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) documents your equity amount � and your lender will probably request one before they agree to cancel PMI.
CHASE MORTGAGE INC #317430 can help find out if you can eliminate your PMI. Call us: 435-755-6622.