For loans made after July 1999,
lenders are required by federal law to automatically
cancel Private Mortgage Insurance (PMI) when the loan
balance falls below 78 percent of your purchase price — not
when you achieve 22 percent equity, which will happen
much more quickly with rising property values.(Certain "higher
risk" loans are excluded.)But you have the right to cancel PMI (for loans
made after July 1999) once your equity reaches 20 percent,
regardless of the original purchase price.
Keep track of your principal payments.Also
keep track of what other homes are selling for in your
neighborhood.If
your loan is under five years old, chances are you haven't
paid down much principal — it's been mostly interest.But
property values in many parts of the country have gone
through the roof lately.And
that can earn you 20 percent equity even if you haven't
paid down much principal.
When
you think you've reached 20 percent equity in your home,
you can begin the process of freeing yourself from PMI payments!You
will need to notify your mortgage lender that you want to
cancel PMI payments and you'll need to submit proof that
you have at least 20 percent equity.A
state certified appraisal on the appropriate form (URAR-
1004 uniform residential appraisal report for single family
homes) is the best proof there is — and most lenders
require one before they'll cancel PMI.
Copyright 03/11/10 NH HOME TEAM
Copyright
2010 Northern New England Real Estate Network, Inc. All rights reserved.
This property's agent is from This
information is deemed reliable but not guaranteed. The data relating
to real estate for sale on this web site comes in part from the IDX
Program of NNEREN. Data last updated
March 11th, 2010
NH HOME
TEAM
Box 112 Goffstown NH 03045
1-800-398-3255
