Have you been paying private mortgage insurance for years? You may be closer than you think to getting rid of that extra payment, which for many people can amount to hundreds of dollars a year. Home improvements, appreciation and extra payments can all shorten the time you have to pay PMI. The basic rule is that you can cancel your PMI payments once your home equity reaches 20 percent of your home's value. If you think you might be unnecessarily paying private mortgage insurance, take this quiz to find out whether you're paying unnecessary PMI. Do you think you're close to having 20 percent equity?Yes. No Has your home risen in value?Yes No. Have you made extra payments?Yes. No. Do you know exactly how much your down payment was?Yes. No. Do you know your mortgage balance?Yes. No. Are you willing to pay for an appraisal?Yes. No. Have you made all your payments within 30 days of the due date?Yes. No. Do you have the phone number for your lender's customer service department?Yes. No. Let Bankrate e-mail you when rates change! Click here Print E-mail National Mortgage RatesOVERNIGHT AVERAGESRates may include points.30 yr fixed mtg6.33%15 yr fixed mtg5.86%5/1 jumbo ARM6.29%Compare ratesRate AlertsEnter your tip now!Share it to win $100. advertisementRelated Links:Rate Trend IndexAvoid foreclosureRate RoundupRelated Articles:Cheap loans on new homesStaving off foreclosureLoan modification scams
Do you think you're close to having 20 percent equity?
Yes.
No
Has your home risen in value?
Yes
No.
Have you made extra payments?
Do you know exactly how much your down payment was?
Do you know your mortgage balance?
Are you willing to pay for an appraisal?
Have you made all your payments within 30 days of the due date?
Do you have the phone number for your lender's customer service department?
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