Goodbye, PMI!

For loans closed after July 1999, lenders are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance goes under 78 percent of your purchase amount � but not when the loan reaches 22 percent equity. (Certain "higher risk" morgages are not included.) However, if your equity gets to 20% (no matter what the original purchase price was), you are able to cancel PMI (for a loan that past July 1999).

Keep track of payments

Study your monthly statements often. Also be aware of what other homes are selling for in your neighborhood. You are paying mostly interest if you closed your mortgage fewer than 5 years ago, so your principal most likely hasn't been reduced by much.

The Proof is in the Appraisal

You can begin the process of canceling PMI as soon as you you think that your equity has risen to 20%. You will need to notify your mortgage lender that you wish to cancel PMI. The lending institution will ask for documentation 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), required by most lenders before canceling PMI.

Amity Mortgage LLC can help find out if you can eliminate your PMI. Give us a call at 2037296681.

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Amity Mortgage LLC

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185 Meadow St
Naugatuck, CT 06770