Are you looking for a new mortgage? We will be glad to assist you! Call us at (314) 395-8300. Ready to get started? Apply Here
Since 1999, lenders have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) when his mortgage balance (for loans closed past July of that year) goes down below seventy-eight percent of the price of purchase, but not at the point the borrower's equity reaches over twenty-two percent. (Certain "higher risk" mortgage loans are not included.) However, you are able to cancel PMI yourself (for mortgages made past July 1999) once your equity gets to 20 percent, without consideration of the original purchase price.
Keep track of payments
Review your mortgage statements often. Also be aware of what other homes are selling for in your neighborhood. You are paying mostly interest if your closing was fewer than 5 years ago, so your principal probably hasn't been reduced by much.
Verify Equity Amount
As soon as your equity has reached the magic number of twenty percent, you are just a few steps away from stopping your PMI payments, once and for all. Contact the lending institution to request cancellation of your Private Mortgage Insurance. Lending institutions ask for documentation verifying your eligibility at this point. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) will be all the proof you need - and most lending institutions request one before they agree to cancel.
At Mason Mortgage Advisors, we answer questions about PMI every day. Call us at (314) 395-8300.
Got a Question?
Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.