Eliminating Private Mortgage Insurance
Private Mortgage Insurance (PMI) will cost you 40.00-50.00 or even 100's of dollars a month. Putting your mortgage on the Money Merge Account program will rapidly increase your equity, therefore allowing you to contact your lender to have it cancelled. You can then use it to save even more time and money or simply spend it yourself.
Stop giving them your hard earned money - Get your money working for you.
For loans made after July 1999, lenders are required by federal law to automatically cancel Private Mortgage Insurance (PMI) when the loan balance falls below 78 percent of your purchase price — not when you achieve 22 percent equity, which will happen much more quickly with rising property values. (Certain "higher risk" loans are excluded.) But you have the right to cancel PMI (for loans made after July 1999) once your equity reaches 20 percent, regardless of the original purchase price.
Keep track of your principal payments. Also keep track of what other homes
are selling for in your neighborhood. If your loan is under five years
old, chances are you haven't paid down much principal — it's been
mostly interest. But property values in many parts of the country have
gone through the roof lately. And that can earn you 20 percent equity
even if you haven't paid down much principal.
When you think you've reached 20 percent equity in your home, you can
begin the process of freeing yourself from PMI payments! You will need
to notify your mortgage lender that you want to cancel PMI payments and
you'll need to submit proof that you have at least 20 percent equity.
A state certified appraisal on the appropriate form (URAR- 1004 uniform
residential appraisal report for single family homes) is the best proof
there is — and most lenders require one before they'll cancel PMI.
How much money can you save?
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United First Financial, its software agents and subsidiaries provide Internet web based software and support services. United First Financial does not provide accounting, tax, legal, real-estate, mortgage, or investment advice. Interested parties should seek and consult with persons or entities licensed and qualified in those areas for advice relating to those matters. United First Financial is not liable or responsible for claims or representations made by any party which are not included in the Money Merge Account Limited Guarantee
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