Make Private Mortgage Insurance a Thing of the Past

Shopping for a mortgage? Joe Wagner will be glad to assist you! Give Joe Wagner a call today at 612-327-4544. Want to get started? Apply Here.

Although lending institutions have been legally required (for loans closed after July '99) to cancel Private Mortgage Insurance (PMI) at the time the balance goes under 78% of the price of purchase, they do not have to take similar action if the equity is over 22%. (The legal requirement does not include some higher risk mortgages.) However, you can actually cancel PMI yourself (for mortgage loans made after July 1999) once your equity gets to 20 percent, regardless of the original price of purchase.

Verify the numbers

Familiarize yourself with your loan statements to keep track of principal payments. Also stay aware of how much other homes are being sold for in your neighborhood. You've been paying mostly interest if the closing was fewer than 5 years ago, so your principal probably hasn't been reduced by much.

Proof of Equity

At the point you think you've achieved at least 20 percent equity in your home, you can start the process of freeing yourself from PMI payments. First you will let your lender know that you are requesting to cancel your PMI. Then you will be asked to submit proof that you are eligible to cancel. 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.

 

Joe Wagner answers questions about PMI every day. Give Joe Wagner a call at 612-327-4544.





Serving all of Minnesota.
Anoka MN, Apple Valley MN, Bemidji MN, Boundary Waters MN, Brainerd MN, Bloomington MN, Coon Rapids MN, Crow Wing County MN, Dakota County MN, Bloomington MN, Eden Prairie MN, Gull Lake MN, Hennepin County MN, Hopkins MN, Lakeville MN, Lake Mille Lacs MN, Lake Minnetonka MN, Lake Nokomis MN, Lake Pepin MN, Lake Vermilion MN, Lake Winnibigoshish MN, Leech Lake MN, Maplewood MN, Mendota Heights MN, Mound MN, Orono MN, Red Lake MN, Richfield MN, Rosemount MN, Savage MN, St Louis Park MN, White Bear Lake MN, Wright County MN.

 

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