Make Private Mortgage Insurance a Thing of the Past
Since 1999, lending institutions have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) when his loan balance (for a loan closed past July of that year) goes beneath seventy-eight percent of the price of purchase, but not when the borrower's equity climbs to twenty-two percent or more. (There are exceptions -like some loans considered 'high risk'.) But if your equity reaches 20% (no matter what the original price was), you can cancel PMI (for a loan that past July 1999).
Verify the numbers
Keep track of your principal payments. Find out the selling prices of other houses in your immediate area. You are paying mostly interest if you closed your mortgage fewer than 5 years ago, so your principal most likely hasn't gone down much.
At the point you determine you've achieved at least 20 percent equity, you can begin the process of canceling your Private Mortgage Insurance. First you will let your lending institution know that you are requesting to cancel your PMI. Then you will be required to verify that you have at least 20 percent equity. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is the best proof there is � and almost all lending institutions will require one before they'll cancel PMI.
Saab Mortgage can answer questions about PMI and many others. Call us: 703-288-0777.
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