Goodbye, PMI!

For loans made since July 1999, lenders are obligated (by federal law) to automatically cancel Private Mortgage Insurance (PMI) when the loan balance goes below 78 percent of your purchase price � but not when the loan reaches 22 percent equity. (A number of "higher risk" morgages are excluded.) However, you have the right to cancel PMI yourself (for mortgage loans made after July 1999) at the point your equity rises to 20 percent, regardless of the original purchase price.

Verify the numbers

Study your statements often. You'll want to keep track of the the purchase amounts of the houses that sell in your neighborhood. If your mortgage is under five years old, probably you haven't made much progress with the principal � it's been mostly interest.

The Proof is in the Appraisal

You can begin the process of canceling your PMI when you're sure your equity reaches 20%. Contact your lending institution to ask for cancellation of your PMI. Your lender will require documentation that your equity is high enough. Most lenders ask for 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.

At Riviera Funding NMLS#861382 CA DRE Broker #01186669, we answer questions about PMI every day. Call us at 3103737406.

Got a Question?

Do you have a question? We can help. Simply fill out the form below and we'll contact you with the answer, with no obligation to you. We guarantee your privacy.

Your Information
Your Question

Riviera Funding NMLS#861382 CA DRE Broker #01186669

1801 S. Catalina Avenue Suite #201
Redondo Beach, CA 90277