Goodbye, PMI!

Beginning in 1999, lenders have been legally required to cancel a borrower's Private Mortgage Insurance (PMI) at the point his mortgage balance (for a loan made past July of that year) goes down below seventy-eight percent of the purchase price, but not when the loan's equity reaches twenty-two percent or higher. (Certain "higher risk" mortgage loans are excluded.) However, you can actually cancel PMI yourself (for mortgage loans made past July 1999) when your equity gets to 20 percent, no matter the original price of purchase.

Verify the numbers

Review your monthly statements often. Find out the purchase prices of other homes in your neighborhood. If your loan is fewer than five years old, it's likely you haven't made much progress with the principal � it's been mostly interest.

Verify Eligibility

As soon as your equity has reached the required twenty percent, you are just a few steps away from getting rid of your PMI payments, for the life of your loan. First you will let your lending institution know that you are asking to cancel PMI. The lending institution will require documentation that your equity is high enough. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will be all the proof you need � and your lender will probably require one before they agree to cancel PMI.

ADVISORY MORTGAGE can help find out if you can eliminate your PMI. Give us a call: 8102292820.