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Roy Dawson Team Realestate Pro Blog

What Buyers and Sellers need to know. Get the inside scoop

By Roy Dawson | Broker in Dallas, TX

ROY DAWSON TEAM Private Mortgage Insurance. Yes you can stop the pmts. The mtg company will tell you no. Dont give up!

Private Mortgage insurance (PMI) Insurance Secrets

You do not have to pay private mortgage insurance for the life of your home. Once you have reached 20% equity in your home by appreciation, improvements made to the home or paying down the principal balance of the mortgage, you can force the lender to cancel the private mortgage insurance.

Unfortunately, some homeowners unknowingly pay this insurance for many years after it is no longer needed and could end up paying an extra $5000 or even $10,000 or more in useless insurance premiums.

To force your lender to cancer private mortgage insurance, request in writing that the private mortgage insurance be canceled and provide the lender with proof that you have more than 20% equity. Some mortgage lenders will require 25% equity. The necessary proof of equity is usually a state certified appraisal on the appropriate form. The URAR-1004 uniform residential appraisal report is needed for single family homes.

Most lenders will require you to fill out a brief form. Since private mortgage insurance protects the mortgage lender against loss if a borrower stops making payments, the mortgage lender may also require you to have a good payment history. A good payment history usually means that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years.

Private Mortgage insurance (PMI) Insurance Secrets

You do not have to pay private mortgage insurance for the life of your home. Once you have reached 20% equity in your home by appreciation, improvements made to the home or paying down the principal balance of the mortgage, you can force the lender to cancel the private mortgage insurance.

Unfortunately, some homeowners unknowingly pay this insurance for many years after it is no longer needed and could end up paying an extra $5000 or even $10,000 or more in useless insurance premiums.

To force your lender to cancel private mortgage insurance, request in writing that the private mortgage insurance be canceled and provide the lender with proof that you have more than 20% equity. Some mortgage lenders will require 25% equity. The necessary proof of equity is usually a state certified appraisal on the appropriate form. The URAR-1004 uniform residential appraisal report is needed for single family homes.

Most lenders will require you to fill out a brief form. Since private mortgage insurance protects the mortgage lender against loss if a borrower stops making payments, the mortgage lender may also require you to have a good payment history. A good payment history usually means that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years.

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THE DAWSON TEAM

WILLIAM DAVIS REALTY / DFW

17732 PRESTON RD. #100, DALLAS, TEXAS 75252 PH: 972-661-1498 FAX: 972-761-1905

Website www.RoyDawsonHomes.com E-mail Roy@RoyDawsonHomes.com
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