Question: We bought our home in 2000 and the value has nearly doubled. How can we cancel private mortgage insurance?

Answer: Lenders want to see at least 20 percent down when buying a home. But such cash is rarely available up-front, especially for first-time purchasers. Rather than cash, however, lenders will also accept private mortgage insurance -- "MI" -- as a substitute, meaning that instead of waiting years to accumulate cash, purchasers can buy now with 5, 10 or 15 percent down -- and sometimes less.

The MI fee in most cases is paid monthly on the basis of the outstanding loan balance -- as debt is reduced, so is the MI premium.

However, MI can also be canceled under certain circumstances. The rules look like this:

• For mortgages originated before July 29, 1999, the lender determines when MI can be canceled.

• Mortgages originated after July 29, 1999 come under the Homeowners Protection Act of 1998 (HPA). It says borrowers can apply to end MI coverage when the original loan amount has been reduced by 20 percent. The lender, in most cases, must cancel MI when the original loan amount is reduced 22 percent. An MI cancellation calculator can be found at PrivateMI.com .

There is no provision under HPA to cancel mortgage insurance because the value of a property has risen and the owners now have more equity. However, lenders may elect to cancel MI if the property value has increased and the loan is "seasoned" -- that is, the mortgage has been in place for several years and the borrower has demonstrated a history of good payments.

To show value, a borrower must provide an appraisal in most cases, though a Broker's Price Opinion (BPO) is acceptable for loans owned by Freddie Mac. The appraiser or broker must be selected by the lender and the valuation must include both an exterior and interior review of the home.

So, call your lender and ask if you meet the appropriate standards for cancellation, credit, and seasoning. If yes, ask the lender to arrange an appraisal or BPO.

Question: What adds more value to your home, a metal roof or a shingled roof?

Answer: Asphalt shingles may last 20 years while a metal roof can be in place for 50 years or more if properly installed and maintained -- I once fixed a metal roof that was more than a century old.

However, a metal roof is expensive to install and requires more maintenance than shingles.

There is also another issue to consider: Some people like the sound of rain on a tin roof, some don't.

Bottom line: A metal roof adds more value than shingles -- but also costs more to install and maintain.

Question: My husband and I just sold our home. Our daughter has offered to build an in-law apartment behind and above a two-car garage at her house. We have approval from the town she lives in to do this.

We would have our own entrance and would not need to enter her house for anything. The apartment would have it's own kitchen, bath, bedroom, and laundry room.

We're 99 percent sure this is the right thing to do, but our friends don't agree. They have not given us any real reasons to back-up their statements. Do you know what main problems people might encounter who live in an in-law apartment?

Answer: Your daughter has been extremely gracious and is offering you a wonderful option. In essence, she has created a multi-generational household with both space and privacy. She is also adding to the value of her property.

Is there a drawback to this arrangement? In time, steps to the second floor may become an issue -- but that's something which can be overcome with proper planning and construction.

Question: I'm interested in buying a home. I'm a first-time buyer and my credit isn't all that good. What do lenders look at in my credit and how can I improve my credit?

Answer: Lenders do not look for perfect credit, but they want to see an ability to take on and handle debt, a steady income and a willingness (and ability) to make a downpayment -- the more the better.

To improve your credit make a point of paying bills on time and in full. Save money. Review your credit reports to see if they contain any factual errors -- if yes, write to the credit reporting agency and document your facts with receipts and canceled checks.

Question: We are the third owners of a 20-year old home. The city's environmental planner came by and told us our fill piles in the backyard were in the wetland buffer zone of 100 feet. Our property is 100 feet x 300 feet and the backyard is woods. We had NO IDEA that our property was wetland.

The brokers and owners of the home knew we planned to remodel, landscape and build a patio. We paid $2,000 to have the fill removed. I need a scientist, map and permit before I can grow grass. Any suggestions?

Answer: "Wetlands" in the past few years seem to be defined as any property that is now or has ever been moist. The old concept of property owners actually getting the benefit of their ownership is increasingly challenged by soggy notions of community interest. Such claims are sometimes challenged under the "taking" clause of the Fifth Amendment, a route you may want to consider.

The broker and past owner may have had no reasonable idea that the property was a "wetland." Did the sellers or other property owners know beforehand of a wetlands designation? If not, when did the property become a "wetland?" Who makes a final determination?

To go further, contact real estate attorneys and property owner organizations in your community and state.

Question: I brought a house with owner financing that I am still paying. Can I buy a new house?

Answer: Yes, if you have full title you can sell the present property to someone and buy a replacement home. However, your buyer would have to get their own financing unless your owner "take-back" is assumable -- and that's unlikely. At closing, part of the sale price will be used to pay-off the owner financing in full, thus satisfying the debt.

If you mean, can you buy another home and rent the one you now have, check the loan papers. Is there a "gotcha" clause which says that the loan must be paid off if you rent the property? Have an attorney or legal clinic look at the loan papers for a specific answer.

Question: I am considering the purchase of a home, however I was told that the houses in this area were built on a landfill. Is there a way to find out if this is true?

Answer: Go to the community planning office, environmental office or property records office -- you should be able to get a quick and authoritative answer. As well, before buying speak with the neighbors and ask if they have had any problems related to past usage.

Have a real estate question? Send your inquiry to . Because of the volume of mail received, Mr. Miller cannot respond to questions individually or privately. Published letters may be edited for space and style. For comments regarding other Realty Times articles, please contact individual authors by pressing here .

This column is designed to provide accurate and authoritative information in regard to the subject matter covered. It is made available with the understanding that neither the author nor the publisher is engaged in rendering legal, accounting, or other professional services. If legal services or other expert assistance is required, the services of a competent professional person should be sought.