Goodbye, PMI!

For loans made since July 1999, lending institutions are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the balance of the loan gets lower than 78 percent of the purchase amount � but not when the loan reaches 22 percent equity. (Some "higher risk" loan programs are excluded.) But you have the right to cancel PMI yourself (for mortgages closed past July 1999) when your equity gets to 20 percent, regardless of the original purchase price.

Keep a record of payments

Review your loan statements often. Also be aware of how much other homes are being sold for in your neighborhood. You are paying mostly interest if the closing was fewer than 5 years ago, so your principal probably hasn't gone down much.

The Proof is in the Appraisal

You can begin the process of PMI cancelation when you you think that your equity reaches 20%. You will first notify your lender that you are requesting to cancel PMI. Lending institutions request documentation verifying your eligibility at this point. A state certified appraisal documented on the appropriate form (URAR-1004 - Uniform Residential Appraisal Report) verifies your equity amount � and your lender will probably request one before they'll cancel PMI.

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