Goodbye, PMI!

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Although lending institutions have been legally obligated (for loans closed past July 1999) to cancel Private Mortgage Insurance (PMI) at the point the mortgage balance gets below 78% of the purchase price, they do not have to take similar action if the equity is over 22%. (There are some loans that are excluded -like some loans considered 'high risk'.) But if your equity rises to 20% (regardless of the original purchase price), you are able to cancel your PMI (for a loan that past July 1999).

Keep a record of payments

Keep a running total of money going toward the principal. Find out the prices of other homes in your neighborhood. If your mortgage is under five years old, it's likely you haven't made much progress with the principal - it's been mostly interest.

Proof of Equity

You can start the process of PMI cancellation as soon as you calculate that your equity has reached 20%. You will first notify your lender that you are asking to cancel your PMI. The lending institution will request proof that your equity is high enough. The best proof there is can be found in a state certified appraisal on form URAR-1004 (Uniform Residential Appraisal Report), which is required by most lending institutions before canceling PMI.

dbl mortgage, LLC can answer questions about PMI and many others. Call us: 612-749-4914.