Goodbye, PMI!

Although lenders have been legally required (for loans closed after July 1999) to cancel Private Mortgage Insurance (PMI) at the time the balance gets under 78% of the price of purchase, they do not have to cancel automatically if the borrower's equity is more than 22%. (Some "higher risk" morgages are excluded.) However, if your equity reaches 20% (regardless of the original purchase price), you have the right to cancel PMI (for a mortgage closed past July 1999).

Keep track of payments

Review your mortgage statements often. Pay attention to the selling prices of other homes in your immediate area. Unfortunately, if yours is a recent mortgage loan - five years or under, you probably haven't started to pay a lot of the principal: you have been paying mostly interest.

Proof of Equity

As soon as your equity has reached the magic number of twenty percent, you are not far away from getting rid of your PMI payments, for the life of your loan. First you will notify your lender that you are requesting to cancel PMI. Lending institutions request proof of eligibility at this point. A state certified appraisal using the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) is the best proof there is � and your lender will probably request one before they agree to cancel.

BeneGroup, Inc. can help find out if you can eliminate your PMI. Call us at 4083956018.