Make Private Mortgage Insurance a Thing of the Past
Since 1999, lending institutions have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) at the point his loan balance (for loans closed past July of '99) goes below seventy-eight percent of the purchase price, but not at the time the loan's equity reaches over twenty-two percent. (There are some exceptions -like some "high risk' loans.) But if your equity reaches 20% (no matter what the original price was), you have the right to cancel your PMI (for a mortgage loan that after July 1999).
Do your homework
Keep track of your principal payments. You'll want to keep track of the prices of the homes that sell around you. If your mortgage is fewer than five years old, probably you haven't paid down much principal � it's been mostly interest.
Proof of Equity
You can begin the process of canceling your PMI when you're sure your equity has reached 20%. Call your lending institution to request cancellation of PMI. Lending institutions request paperwork verifying your eligibility at this point. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is the best proof there is � and almost all lenders will require one before they'll cancel PMI.
U.S.A. Lending, Inc. can answer questions about PMI and many others. Give us a call: 305-967-7200.