The exact rules for canceling PMI are largely in the hands of your lender and the company from whom your lender buys mortgage insurance. Some baseline rules about cancellation were established by the federal “Homeowners’ Protection Act.” This law, however, doesn’t offer consumers as much protection as its name would suggest, and it applies only to people who bought their homes after July 29, 1999.
Some Lenders have implemented minimum time limits before PMI can be removed regardless of the amount of equity in a home. It’s important for the homeowner to find out if the Lender has implemented any minimum time limits before the process of removing the PMI.
Even if a homeowner doesn’t have enough equity, Congress recently passed a law which allows PMI insurance to be deductible from your taxes. This law is retroactive to 2012 so many recent home purchasers should be able to benefit it. There are exceptions and income limits so a tax professional should be contacted for specifics.
The savings from cancelling the PMI required when you got your mortgage will make up for the cost of the appraisal in no time. We at Clayton County Home Appraiser are experts when it comes to value trends in the city of Atlanta and Fulton County.
Contact your lender to find out the appropriate PMI cancellation procedures. Lenders will often require an appraisal by a state-certified appraiser as reassurance that the 20% required equity on your house has been met. Let us at Clayton County Home Appraiser help you remove your PMI.
As a trusted Georgia home appraiser with since 2001, we will provide you with the service, details and speedy home appraisal reports many of our customers have come to expect. Let us at Clayton County Home Appraiser help get your PMI removed.