Since 1999, lenders have been required to cancel a borrower's Private Mortgage Insurance (PMI) at the point his loan balance (for a loan closed past July of '99) goes beneath seventy-eight percent of the purchase price, but not when the borrower's equity reaches over twenty-two percent. (The legal requirment does not apply to a number of higher risk mortgages.) However, if your equity rises to 20% (no matter what the original purchase price was), you are able to cancel PMI (for a mortgage loan that past July 1999).
Verify the numbers
Familiarize yourself with your loan statements to keep track of principal payments. Also be aware of how much other homes are being sold for 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.
You can begin the process of PMI cancelation as soon as you're sure your equity has risen to 20%. Contact the mortgage lender to request cancellation of your Private Mortgage Insurance. The lending institution will ask for documentation that your equity is high enough. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) verifies your equity amount � and most lending institutions require one before they agree to cancel PMI.
Iltis Lending Group can help find out if you can eliminate your PMI. Give us a call at (941) 954-4252.