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Started By
Message
PMI Clarification
Posted on 7/22/16 at 4:27 pm
Posted on 7/22/16 at 4:27 pm
Good Afternoon Gents.
Currently I am paying $150 a month on PMI. I have paid off roughly 10% of my loan thus far on a 30 year fixed conventional loan.
Home values have increased roughly 10% the last 5 years near home.
My question is this without having to refinance: Is it possible to eliminate PMI before paying off 22%?
I was told two different scenarios:
I can request for reappraisal right now should I feel my equity is greater than 20% or...
I would have to wait until I reach 20% before I can request removing PMI..
Any help is greatly appreciated.
Currently I am paying $150 a month on PMI. I have paid off roughly 10% of my loan thus far on a 30 year fixed conventional loan.
Home values have increased roughly 10% the last 5 years near home.
My question is this without having to refinance: Is it possible to eliminate PMI before paying off 22%?
I was told two different scenarios:
I can request for reappraisal right now should I feel my equity is greater than 20% or...
I would have to wait until I reach 20% before I can request removing PMI..
Any help is greatly appreciated.
5
Posted on 7/22/16 at 4:31 pm to lsusaint86
How long have you been paying on your loan? 5 years?
Posted on 7/22/16 at 4:37 pm to lsusaint86
Essentially yes. What's your interest rate at?
Posted on 7/22/16 at 4:41 pm to HYDRebs
5 years this December.
4.00%
4.00%
Posted on 7/22/16 at 5:48 pm to lsusaint86
If you plan to stay long term, it's not a terrible idea to refinance
If you're 5 years in, and can afford it, refinance to a 15 year mortgage and likely get down to 3.5 or below.
If you're 5 years in, and can afford it, refinance to a 15 year mortgage and likely get down to 3.5 or below.
Posted on 7/22/16 at 8:03 pm to Croacka
quote:
If you plan to stay long term, it's not a terrible idea to refinance
If you're 5 years in, and can afford it, refinance to a 15 year mortgage and likely get down to 3.5 or below.
With the lower rate and removal of PMI, your monthly note would be similar to the 30 year mortgage.
Posted on 7/22/16 at 8:10 pm to TigerintheNO
And you'd pay it off 10 years sooner
Posted on 7/22/16 at 8:52 pm to lsusaint86
I thought I heard PMI doesn't go away anymore?? Unless of course you refi. But it will stick with the life of the original loan.
Posted on 7/22/16 at 9:03 pm to FriscoKid
That's only for FHA loans and only the ones originated in the last few years I believe
Posted on 7/23/16 at 9:17 am to Croacka
quote:
refinance to a 15 year mortgage and likely get down to 3.5 or below.
Posted on 7/23/16 at 10:37 am to Croacka
(no message)
This post was edited on 6/25/17 at 7:20 pm
Posted on 7/23/16 at 11:37 am to man117
You can get below 2.5% on a 15 now.
Posted on 7/23/16 at 4:19 pm to Croacka
quote:
If you're 5 years in, and can afford it, refinance to a 15 year mortgage and likely get down to 3.5 or below.
Why would anyone want a 15 year mortgage with interest rates this low
Posted on 7/23/16 at 11:57 pm to lsusaint86
PMI will drop off automatically once you have 22% equity. This is based on terms of the initial transaction. You can request to remove once you have 20% equity with a new appraisal.
Posted on 7/24/16 at 6:02 am to ellesssuuu
quote:
PMI will drop off automatically once you have 22% equity. This is based on terms of the initial transaction. You can request to remove once you have 20% equity with a new appraisal.
not anymore. PMI stays with loan forever. Only way to remov is refi
Posted on 7/24/16 at 8:04 am to ItNeverRains
Wrong
That's only true for certain FHA loans
That's only true for certain FHA loans
Posted on 7/24/16 at 9:20 am to Croacka
Not to derail, but why would they make a policy that PMI does not drop off? I mean who would not refinance to remove it? Sounds like a dumb government policy made for one small reason that rarely happens.
Posted on 7/24/16 at 3:47 pm to baldona
They don't. PMI doesn't even exist on FHA loans it's MMI.
This post was edited on 7/24/16 at 3:48 pm
Posted on 7/25/16 at 8:14 am to lsusaint86
For qualifying loans, PMI will auto-terminate at 78%, but the borrower can request removal at 80%.
Check with you bank to see if they can use a new home value in the ratio. You may have to pay for an appraisal, but it may work in your favor in the long run
Check with you bank to see if they can use a new home value in the ratio. You may have to pay for an appraisal, but it may work in your favor in the long run
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