Make Private Mortgage Insurance a Thing of the Past

Since 1999, lending institutions 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) reaches less than seventy-eight percent of the price of purchase, but not when the borrower's equity reaches twenty-two percent or more. (There are some exceptions -like some loans considered 'high risk'.) However, if your equity gets to 20% (no matter what the original purchase price was), you can cancel PMI (for a loan closed after July 1999).

Verify the numbers

Familiarize yourself with your monthly statements to keep track of principal payments. You'll want to stay aware of the the purchase amounts of the homes that are selling around you. If your loan is under five years old, chances are you haven't greatly reduced principal � you have paid mostly interest.

The Proof is in the Appraisal

Once you determine you've reached 20 percent equity in your home, you can start the process of getting PMI out of your budget. First you will notify your lender that you are asking to cancel your PMI. Lending institutions request proof of eligibility at this point. The best proof there is can be found in a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), required by most lenders before canceling PMI.

Reliance Mortgage Service, Inc can help find out if you can eliminate your PMI. Call us: 562 320-0510.

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.

Your Information
Your Question

English Spanish