First, make sure the equity in
your home is above 20%. Then it’s time to find out
if you qualify for removing PMI from your
pocketbook. While some loans, such as VA and FHA
loans, require PMI for the entire life of the loan,
other types may not require it.
Figure out if you’ve earned at
least 20% equity in your home and lenders – by law – are
required to cancel your PMI. Also, find out if
homes in your neighborhood are rising in value – if they
are – you’ll have accumulated equity sooner than you
thought!
Once you see that you’re eligible to
cancel PMI, call your lender and ask about the
procedures they require to cancel. You may have to
send in a written request. If they tell you that
you don’t yet qualify, ask for a written statement on
what the property would have to be valued at in order
for you to let go of PMI, then get an
appraisal.
Disclaimer: The information
provided in this site is not legal advice, but general
information on financial issues commonly encountered. We
shall not be liable for any errors in the content or for
any actions taken in reliance thereon. Please consult
your financial
advisor.
