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PMI CANCELL ATION Exploring PMI Cancellation Nothing lasts forever including your private mortgage insurance Keeping a close eye on your equity and the appraised value of your home is key to determining when and if you are eligible to cancel your PMI How to Know if You are Eligible Generally once you build up to a least 20 percent equity in your home you can then reach out to your A and N Mortgage Consultant who will walk you through the PMI cancellation process With your trusted mortgage lender you can then asses if you are able to cancel PMI using your original home value or your current home value THIS IS AN ADVERTISEMENT This is not a commitment to lend A and N Mortgage Services Inc 1945 N Elston Ave Chicago IL 60642 p 773 305 LOAN 5626 ANmtg com NMLS No 19291 Serving AL AZ CA CO FL IA IL IN MI MN MT OH SC TN TX WA WI California Licensed by the California Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act Colorado Regulated by the Division of Real Estate Illinois Residential Mortgage Licensee IL MB 0006638 Texas Recovery Fund Notice TX SML Approved For licensing information and for Texas consumers to file a complaint go to anmtg com licensing and nmlsconsumeraccess org Some restrictions may apply Programs subject to change without notice Offer of credit subject to credit approval CANCELLING YOUR PRIVATE MORTGAGE INSURANCE

CANCELLATION CURRENT VALUE Individual investors establish the criteria for cancelling MI based on a property s current value HPA does not address MI cancellation using current value Fannie Mae and Freddie Mac Typically Require3 That the loan be seasoned at least 2 years AND That the borrowers have an acceptable payment history AND That the LTV based on a current appraisal is 75 or lower if less than 5 years have elapsed since the loan originally closed OR That the LTV based on a current appraisal is 80 or lower if more than 5 years have elapsed since the loan originally closed Check other investors mortgage insurance cancellation requirements Borrowers must request MI cancellation in writing and provide a current value estimate acceptable to their lender CANCELL ATION ORIGINAL VALUE The Homeowners Protection Act of 1998 HPA 1 covers single family primary residences whose sales were closed on or after July 29 1999 HPA provides for borrower requested and lender required cancellation Borrower Requested Under HPA The borrowers must provide a written request for MI cancellation to the lender who cancels the MI policy On the date the mortgage loan balance is first scheduled to reach 80 of original value based solely on the initial amortization schedule2 regardless of the outstanding balance of the loan OR On the date the mortgage loan balance actually reaches 80 of the original value MI coverage can be cancelled only if The borrowers have a good payment history AND The borrowers satisfy any lender requirements that the property value has not declined and that no subordinate liens exist Lender Required Under HPA Lender must automatically cancel MI policy On the date the mortgage loan balance is first scheduled to reach 78 of original value based solely on the initial amortization schedule2 regardless of the outstanding balance of the loan AND If the borrowers are current on the payments required by the terms of the mortgage Different cancellation requirements apply to loans designated at origination as high risk REACH OUT TO AN A AND N TEAM MEMBER Cancelling your private mortgage insurance could save you in the long run but deciphering if and when you can cancel can be difficult Reach out to your A and N Mortgage Consultant to see if you are eligible and if the process of cancellation is right for your specific financial situation 1 Consult with your own counsel to assure compliance with the HPA 2 For ARM loans the amortization schedule then in effect applies 3 Fannie Mae and Freddie Mac requirements were taken from their Seller Servicer Guides and are subject to change A and N does not warrant that this information is up to date Refer to the agencies Seller Servicer Guides for the most current MI cancellation information