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Is it time to Cancel you PMI?
Up
to $700 million per year is paid to Private Mortgage Insurance (PMI) companies by homeowners who are no longer required to carry their policies. Most lenders only require PMI when a borrower puts down less than 20% when purchasing a new home. Once a homeowner’s equity reaches 20% or more through
appreciation, increased values, home improvements or simply by paying down the loan over time, money can be saved by canceling the
coverage. But that hasn’t been the case. Many lenders have continued to bill homeowners for PMI long past that threshold.
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Thanks to a new law, that won’t happen so much any more. As of July 29, 1999, the Homeowners Protection Act of 1998 mandates that PMI be automatically
terminated when a homeowners equity reaches 22% of the home’s appraised value. Unfortunately, this only applies to mortgages issued after that date. Homeowners with older mortgages must still apply to have their PMI cancelled.
Begin your inquiry with the lender to find out what they require. Ask them what the minimum property value must be in order to cancel the PMI. You will probably have to get your property reappraised.
Smitha and Rahul can provide you with the current market value of your home, which the lender might require. There is no obligation of course.
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Equal Housing Opportunity |
Smitha and Rahul Ramchandani
- The Townhouse Experts
Broker-Salesperson/Sales Representative | Keller Williams Towne Square Realty
55 Madison Ave - 4th Floor | Morristown, NJ 07960
Smitha Mobile: 973-953-7777 | Rahul Mobile: 973-615-6504
Office) 973-775-9646
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Site Last
Updated:
June 01, 2011 |
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Copyright Notice:
TheTownhouseExpert.com is a registered service mark. The information contained in this site is for general consumer use only. While all information is deemed reliable, it cannot be guaranteed. No portion may be copied or reproduced without the express written consent of Smitha and Rahul Ramchandani. All rights reserved. © 2006. By submitting your telephone number anywhere on this website you are consenting for Smitha and Rahul Ramchandani and their authorized representatives to contact you even if your name is on the Federal "Do-not-call List." Each office independently owned and operated. Each office independently owned and operated.
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