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How to Cancel Private Mortgage Insurance

How to End Private Mortgage Insurance

When you buy a home and put less than a twenty percent down, you’ll be required to pay what is known as private mortgage insurance. The purpose of private mortgage insurance is to protect the lender in the event you default on the loan.

In other words, private mortgage insurance is a useless fee that a borrower will be paying their bank every year. Folks this is a lot of money going down the drain that could be used elsewhere in their budget.

For this reason lots of people wonder how they can stop paying private mortgage insurance. In the article at Maximum Real Estate Exposure, you will see a detailed explanation on how end your mortgage insurance payments.

If you are getting close to having at least twenty percent equity in your house this will be the time to think about contacting your lender. Legally, once you have at least twenty-two percent equity the lender is required to terminate the private mortgage insurance.

See all you need to know by visiting the resource mentioned above.

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Written by massrealty

Bill Gassett is a thirty-three year veteran to the real estate industry. He works for RE/MAX Executive Realty in Hopkinton Massachusetts. Bill runs the successful Maximum Real Estate Exposure site where he shares his expertise on buying and selling homes.

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