Make Private Mortgage Insurance a Thing of the Past

Since 1999, lenders have been required to cancel a borrower's Private Mortgage Insurance (PMI) at the point his loan balance (for loans closed past July of '99) goes under seventy-eight percent of the price of purchase, but not at the time the borrower's equity gets to higher than twenty-two percent. (Some "higher risk" loan programs are excluded.) But you can actually cancel PMI yourself (for mortgage loans closed after July 1999) when your equity reaches 20 percent, regardless of the original purchase price.

Verify the numbers

Analyze your statements often. You'll want to be aware of the prices of the houses that sell in your neighborhood. You've been paying mostly interest if the closing was fewer than 5 years ago, so your principal probably hasn't lowered much.

The Proof is in the Appraisal

You can begin the process of PMI cancelation when you determine your equity has reached 20%. Call the lender to ask for cancellation of your PMI. Next, you will be asked to verify that you have at least 20 percent equity. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) documents your equity amount � and most lending institutions request one before they agree to cancel.

Tier One Mortgage, LLC can answer questions about PMI and many others. Give us a call: (585) 282-0960.