Have a question if anyone on the board has gotten rid of their PMI before?

With the housing market in my area jumping I believe with the raised prices the equity i would have in my house is over 20%. Any ideas on how to go about getting the PMI taken off?

I have been told you need to get the house reappraised, and have also had people mention that i will have to refinance. Not looking forward to that but the 200 bucks a month savings will help a lot. Do i contact the bank that my mortgage is with or will any institute help me?

Any info? Is it a big hassle or relatively painless?

 

Depending on your lenders policy they may allow to just get the home reappraised to get rid of it. Otherwise if they dont and you have to refi now is the time!

Good Luck

 

Don't get the appraiser yourself...or you may end up paying for it twice Usually they'll order it.

Phil, does FNMA have a guideline on new construction...like a 2 year minimum before you can drop it? My job(mortgage co) is giving me a hard time & it's next to impossible to get any clear answers from the HUD sites, etc.

 

It all dependant on which state you live in!

for example in NY if you purchase a home and it appraises at the time of purchase for more and it reflects 20% equity you dont have any pmi!!

 

I know. Bought in 2001 @ 7.25% (30yr). Refin. in 2003 @ 6.0% (20yr). Thinking about doing it again (15 yrs ??).

 

15yr w no points today is at 4.625%

 

[QUOTE]Originally posted by 95gt
[B]Have a question if anyone on the board has gotten rid of their PMI before?

With the housing market in my area jumping I believe with the raised prices the equity i would have in my house is over 20%. Any ideas on how to go about getting the PMI taken off?

I have been told you need to get the house reappraised, and have also had people mention that i will have to refinance. Not looking forward to that but the 200 bucks a month savings will help a lot. Do i contact the bank that my mortgage is with or will any institute help me?

http://houseandhome.msn.com/Insuranc...tRidofPMI.aspx

read this!!! it should answer all your questions

 

Good article thanks. God that article does not make lenders look too good. God PMI is such a ripoff. Looks like it may be a big hassle to get rid of it.

 

Its no the lenders that dictates the pmi its the govt

 

be firm and strick call them everyday if you have two.. keep in mind that the averge property gos up 4% a year...

 

Nope. hey read the article . Very informative.

Lenders are the ones that set the rules on when it can be taken away. I think the gov should help out and make it tax deductible to some degree

 

Not in NY

 

I know. I bought last year and ones next door have sold for 10% more already and one is now on the market for 25% more than i bought it.

Only thing i am worried about is because i just recently purchased that they may give me a tough time.

Ah well, if that house goes for 25% more i am going to raise a rucos to get mine taken off.

 

The lenders can choose to have pmi but n0ot on a freddie mac or fannie mae program in NY at the time the loan closes.....that would make it an inhouse program or a non-conventional loan

After the loan closes in NY it IS the lenders decision or rather the MI company's!

 

I don't pay PMI because I have a second mortgage to bring me up to that 20% threshold. It's called a 80\20 loan.

 

Like LegendC, I have a second small mortgage too -- specifically to make up the difference to get out of PMI. Essentially I have close the the same total payment that I would have had with PMI, but now I get a tax savings on the interest for the second loan that I wouldn't have got with the PMI.

This second loan is one of the first things I'll be paying off when I raise the funds. I think I got it at about 7% for 30 years.

 

Yeah they gave me that option but it ended up costing about 400 more a month which was too much to swing, even with some cost savings because of the tax write off. Wish i could have done that though. Damn the man for holding me down

 

I'm in a FNMA mortgage & was told 2 years...what a rip off.

It's about $125/month too...

Phil, if you know anybody in the business around here(PA,DE, etc) who could help with more info...let me know in PM.

 

PM sent

 

[QUOTE]Originally posted by rob1208lv
[B]Still very general. The problem is that none of the rules are specific to 'actual' appraised value or sales price...and that is a big difference. Especially since my home was new construction.

 

I work for a Bank as an Appraiser...

Just call the Bank and tell them you need to get rid of your PMI insurance as you feel you have sufficient equity for the 80%.

Make sure you have it though as the Bank will charge you for the Appraisal. The Bank does all the work, including sending out an Appraiser...

 

I work for one of the largest lenders in this country. With us, PMI could be removed after 24 months in the mortgage.
Typically an appraisal would need to be done to show sufficient equity in the property. Refi is an option too.

 

I'm thinking the 24 month rule applies to everyone. I've looked high & low and can't find any other regs. The gov't websites are too general to get any real answers.