Goodbye, PMI!

	In the market for a mortgage loan? We can assist you! Call us at 214.485.2200. Want to get started? Apply Here.

For loans made after July 1999, lenders are required (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the balance of the loan gets below 78 percent of the purchase price but not when the loan reaches 22 percent equity. (There are exceptions -like some "high risk' loans.) But you are able to cancel PMI yourself (for mortgages closed after July 1999) once your equity gets to 20 percent, no matter the original price of purchase.

Verify the numbers

Familiarize yourself with your monthly statements to keep your eye on principal payments. Also be aware of what other homes are being sold for in your neighborhood. Unfortunately, if yours is a new loan - five years or under, you probably haven't begun to pay much of the principal: you are paying mostly interest.

Proof of Equity

At the point your equity has risen to the desired twenty percent, you are just a few steps away from getting rid of your PMI payments, once and for all. Contact the lender to ask for cancellation of your PMI. The lending institution will require documentation that your equity is high enough. Most lenders require a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to determine your home's equity and eligibility for canceling PMI.

TMO can answer questions about PMI and many others. Give us a call: 214.485.2200.