Make Private Mortgage Insurance a Thing of the Past
For loans made since July 1999, lenders are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance falls under 78 percent of your purchase amount � but not at the point the loan reaches 22 percent equity. (There are exceptions -like some loans considered 'high risk'.) But you can actually cancel PMI yourself (for mortgages closed past July 1999) at the point your equity gets to 20 percent, regardless of the original price of purchase.
Verify the numbers
Study your statements often. Make yourself aware of the prices of other homes in your neighborhood. If your loan is under five years old, chances are you haven't paid down much principal � it's been mostly interest.
Proof of Equity
At the point your equity has reached the required twenty percent, you are close to getting rid of your PMI payments, once and for all. You will first notify your lender that you are asking to cancel PMI. Lenders request proof of eligibility at this point. Usually lenders ask for a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to verify your equity and eligibility for canceling PMI.
Financial Edge Mortgage Corp. can help find out if you can eliminate your PMI. Give us a call at 425-508-9988.
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