Can you Eliminate Principal Mortgage Insurance cost with a First Equity Refinance Mortgage?

We can help! We can look at your situation and perform a free mortgage analysis for you very quickly. We enjoy helping customers plan for their futures and really like it when "Getting out of Debt" quicker is the goal. With us...it's always about the cheapest best option for you. Give us a call - 256-543-0670     Want to get started? Apply Online Now. Simple Process for purchase or refinancing homes. 

Beginning in 1999, lending institutions have been obligated to cancel a borrower's Private Mortgage Insurance (PMI) at the point his loan balance (for a loan made after July of '99) reaches less than seventy-eight percent of the purchase price, but not when the borrower's equity reaches twenty-two percent or higher. (Some "higher risk" loans are excluded.) But if your equity reaches 20% (no matter what the original price was), you have the legal right to cancel your PMI (for a mortgage loan closed after July 1999). They aren't going to always just drop this insurance. An Old friend that bought a house from Us stated...The Answer is always No... If I don't ask! That applies with dropping PMI best we can tell. We will show you some Options.

Verify the numbers

Keep a running total of each principal payment. You'll want to keep track of the the purchase amounts of the homes that sell around you. You are paying mostly interest if your mortgage loan closed fewer than 5 years ago, so your principal probably hasn't gone down much unless you went with a short term mortgage...15 or 20 years vs. 30.

Verify Eligibility

You can start the process of canceling your PMI when you determine your equity reaches 20%. You will first notify your lender that you are asking to cancel your PMI. Your lender will require proof that your equity is at 20 percent or above. Usually lenders ask for a state certified appraisal documented on the form: URAR-1004 (Uniform Residential Appraisal Report) to determine your equity and eligibility for PMI cancellation. 

Houses have finally ticked up in Value a bit in Alabama Markets  so it's very possible your home has appreciated more than enough for you to eliminate PMI. Other options include a second mortgage to pay the balance below 78 percent and then eliminate PMI. We'll help you figure out how to save money on your mortgage if it's possible...give us  a call... we have experts in every market in Alabama. A Refinance Solutions might solve the problem and put cash in your hands.

At First Equity Home Loan, Inc., we answer questions about PMI  and Mortgages every Single day but Christmas practically...so we're always ready to help. Apply online or give us a call  at our office. 256-543-0670. 

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