Make Private Mortgage Insurance a Thing of the Past
Since 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 after July of '99) reaches less than seventy-eight percent of the price of purchase, but not at the point the loan's equity gets to twenty-two percent or more. (The legal obligation does not include some higher risk mortgages.) However, you can actually cancel PMI yourself (for mortgages closed past July 1999) at the point your equity reaches 20 percent, no matter the original purchase price.
Do your homework
Keep track of each principal payment. Also keep track of the price that other homes are purchased for in your neighborhood. If your mortgage is under five years old, probably you haven't paid down much principal � you have been paying mostly interest.
The Proof is in the Appraisal
Once you determine you have achieved at least 20 percent equity, you can begin the process of canceling your Private Mortgage Insurance. You will need to notify your mortgage lender that you want to cancel PMI. Lending institutions require proof of eligibility at this point. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is the best proof there is � and your lender will probably request one before they agree to cancel PMI.
Hancock Mortgage Partners, LLC NMLS# 229844 can help find out if you can eliminate your PMI. Call us: 225 819 7670.