How can my pmi insurance on my mortgage be lowered?
Two days before I cloed my pmi went up 800 dollars. I now pay 800 a month just for private mortgage insurance. I have made all payments on time for a year. I just want it to be lowered to what is normal. O yeah and with this market i have no equity to refinance!
PMI stays on a property until the house reaches 80% loan to value. The bank usually automatically removes the PMI when the value is at 78% of the loan.
So, you either need to make extra principal payments on the loan or you need to sit it out and wait for the market to gain value.
Talk to your bank again when you see houses around you selling for what you think will give your house an 80% loan to value and get an appraisal done.
If you have no equity now, it is impossible to make it go away.
Refinancing won’t make it go away – unless, you get two loans instead of one. The first mortgage is done at 80% loan to value of the property. The second mortgage (at a slightly higher percentage rate) is done for the balance (in this case 20%). You pay both off at the same time, but the second is a shorter loan period.
It works because if you have a second mortgage for the same cost each month as the PMI, you are paying 800 toward your house, as opposed to paying it to PMI (money you won’t see again).
Mortgage Insurance | admin, 31 Oct 09
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By Biggie @ Arbor Mortgage, October 31, 2009 @ 11:27 pm
Sell your home & get something cheaper!
References :
By iluvjdeere, November 1, 2009 @ 12:02 am
You need to call your lendor. They might work with you. Good luck. I have the same problem. My finance company wont’ work with me. They don’t care where you get the money, as long as you just pay it. Good luck.
References :
By KKup, November 1, 2009 @ 12:47 am
PMI stays on a property until the house reaches 80% loan to value. The bank usually automatically removes the PMI when the value is at 78% of the loan.
So, you either need to make extra principal payments on the loan or you need to sit it out and wait for the market to gain value.
Talk to your bank again when you see houses around you selling for what you think will give your house an 80% loan to value and get an appraisal done.
If you have no equity now, it is impossible to make it go away.
Refinancing won’t make it go away – unless, you get two loans instead of one. The first mortgage is done at 80% loan to value of the property. The second mortgage (at a slightly higher percentage rate) is done for the balance (in this case 20%). You pay both off at the same time, but the second is a shorter loan period.
It works because if you have a second mortgage for the same cost each month as the PMI, you are paying 800 toward your house, as opposed to paying it to PMI (money you won’t see again).
References :
By David Beasley, November 1, 2009 @ 1:30 am
MI policies are credit score, income documentation, and LTV driven. Mortgage insurance co.s are taking a bath with all the foreclosures, and YES, they are pricing new MI policies as such. Sounds like you were lucky to get a policy at all.
Now for the good news. Fannie/Freddie loans (like you have) will eliminate the MI if:
1) the value of the house is 125%+ of the loan amount (80% LTV) or…
2) you refinance later when you get your credit score up over roughly… 680 and the loan balance is less than 95% of the value.
Get with a mortgage professional about increasing your credit score.
Best of luck!
PS. Another answerer’s idea about a 2nd mortgage is great…. if you can get one. Odds are that your lender could NOT get a 2nd mortgage for you at your LTV, credit score and income qualification. I don’t have ANY 2nd mortgage lenders above 90% CLTV, 680+ mid score, AND fully documenting income, AND 6 months reserves, etc. 2nds are HARD to get.
References :
Mortgage professional.