Make Private Mortgage Insurance a Thing of the Past
For loans closed after July 1999, lenders are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the balance of the loan gets under 78 percent of your purchase price � but not when the loan reaches 22 percent equity. (There are exceptions -like some loans considered 'high risk'.) The good news is that you can request cancelation of your PMI yourself (for your mortgage loan closing after July '99), no matter the original purchase price, at the point the equity reaches twenty percent.
Verify the numbers
Keep track of each principal payment. Find out the selling prices of other homes in your immediate area. You've been paying mostly interest if you closed your mortgage loan fewer than 5 years ago, so your principal most likely hasn't lowered much.
The Proof is in the Appraisal
As soon as your equity has reached the magic number of twenty percent, you are close to getting rid of your PMI payments, for the life of your loan. You will need to call your mortgage lender to let them know that you wish to cancel PMI payments. Lenders require proof of eligibility at this point. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is all the proof you need � and your lender will probably require one before they agree to cancel PMI.
U.S.A. Lending, Inc. can help find out if you can eliminate your PMI. Call us: 305-967-7200.