Make Private Mortgage Insurance a Thing of the Past
Shopping for a mortgage? We can assist you! Give us a call at 540-433-6611. Ready to begin? Apply Now
Since 1999, lending institutions have been legally required to cancel a borrower's Private Mortgage Insurance (PMI) when that loan balance (for loans made past July of that year) reaches less than seventy-eight percent of the price of purchase, but not at the point the loan's equity gets to twenty-two percent or higher. (Certain "higher risk" loan programs are excluded.) But you have the right to cancel PMI yourself (for mortgages made past July 1999) at the point your equity gets to 20 percent, without consideration of the original price of purchase.
Do your homework
Familiarize yourself with your loan statements to keep your eye on principal payments. Find out the selling prices of other homes in your neighborhood. If your loan is fewer than five years old, chances are you haven't made much progress with the principal - you have paid mostly interest.
Verify Equity Amount
You can begin the process of canceling PMI as soon as you're sure your equity has risen to 20%. You will first tell your lender that you are asking to cancel PMI. Your lender will require documentation that your equity is high enough. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is the best proof there is - and almost all lenders request one before they'll cancel PMI. Please contact us to help you through the requirements and to determine whether you can ask to drop your PMI today!
Primary Residential Mortgage Inc. can answer questions about PMI and many others. Give us a call: 540-433-6611.
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.