Canceling Private Mortgage Insurance

July 19th, 2011 by Laurence K. Hurley

Canceling Private Mortgage Insurance

The Homeowners Protection Act requires that private mortgage insurance be canceled once borrowers meet specific requirements. The law also requires lenders to notify borrowers of their right to cancel mortgage insurance coverage.

In order to cancel your mortgage insurance you must first determine if you are eligible to cancel the insurance. You need to ask yourself these questions.

1. Have I paid down my mortgage to 80% Loan-to-Value? 2. Have I made any structural improvements that will increase the value of my home? 3. Have homes in my neighborhood appreciated in value?

If you can answer yes to any of these questions you may be eligible to cancel your mortgage insurance. If this is the case, you should contact your lender to find out more about the lenders cancelation policy and requirements. For this contact you need to be prepared with:

1. Your social security number 2. Your proper address 3. Your loan number

Follow the servicers directions and then make a written request to cancel your mortgage insurance. Then stay in contact with your lender about the status of your request.

These things can have a negative effect on canceling your mortgage insurance.

1. You are not current on your loan payments 2. You have a history of late mortgage payments 3. Your property has declined in value 4. An appraisal doesnt reflect an appreciation of 20% or more in your property value. 5. The loan is exempt from cancelation such as an FHA loan which requires a minimum of 5 years payment of mortgage insurance or some VA loans. 6. You have a home equity loan or an existing second mortgage on your home

I hope this information helps you when considering trying to cancel your Private Mortgage Insurance.

Terry Stutts with WR Starkey provided this information. Contact Terry at 704.661.4885 for more info and to see if he can save you THOUSANDS! After your pre-approved be sure to let us find your dream home since now you can buy a bigger home in Charlotte!!

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