Goodbye, PMI!

For loans made since July 1999, lending institutions are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance gets lower than 78 percent of your purchase amount � but not when the loan reaches 22 percent equity. (A number of "higher risk" loan programs are not included.) The good news is that you can request cancelation of your PMI yourself (for a mortgage that closed after July '99), without considering the original purchase price, at the point your equity gets to twenty percent.

Do your homework

Study your statements often. Also stay aware of what other homes are selling for in your neighborhood. You've been paying mostly interest if you closed your loan fewer than 5 years ago, so your principal probably hasn't lowered much.

Proof of Equity

When you determine you have achieved at least 20 percent equity in your home, you can begin the process of freeing yourself from PMI payments. First you will notify your lender that you are asking to cancel your PMI. Lending institutions ask for paperwork verifying your eligibility at this point. The best proof there is can be found in a state certified appraisal using form URAR-1004 (Uniform Residential Appraisal Report), which is required by most lending institutions before canceling PMI.

BeneGroup, Inc. can help find out if you can eliminate your PMI. Give us a call: 4083956018.