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Message
PMI dropping off question
Posted on 6/9/15 at 3:12 pm
Posted on 6/9/15 at 3:12 pm
when my PMI is cancelled, will the amount I'm paying for it then go towards my principal? or will my monthly payment decrease?
10
Posted on 6/9/15 at 3:27 pm to LSU6262
I would imagine that your payment will decrease. I couldn't imagine them automatically rolling it into your principal.
Posted on 6/9/15 at 3:37 pm to LSU6262
You have to request for it to be removed, it won't just fall off. You may even have to pay for your own appraisal to prove you now have 80% equity making you eligible to have it removed. They make it as hard as possible, it's a racket (I used to work for Chase mortgage)
Posted on 6/9/15 at 3:44 pm to LSU6262
They can take it off at 80% loan to value but aren't required until 78% loan to value. I worked at a local bank a few years ago and that was the rules then.
I walked in the day I hit 80% and asked to have it removed. It had to be approved by the board to get it dropped off and it was.
I walked in the day I hit 80% and asked to have it removed. It had to be approved by the board to get it dropped off and it was.
Posted on 6/9/15 at 9:22 pm to LSU6262
Write a letter requesting it to be removed, other advice is good as well.
Posted on 6/9/15 at 11:40 pm to eng08
(no message)
This post was edited on 10/20/21 at 11:56 am
Posted on 6/9/15 at 11:49 pm to lsutiger2010
Just spend the $450 and get an appraisal.
Posted on 6/10/15 at 7:26 am to Paul Allen
The answer is not that straightforward.
First determine if you can get the PMI removed, the recent FHA loans have pmi for life.
If you can first call the lender to determine the process.
Then probably next will be pay for appraisal and once it's received write a letter.
Fwiw I have done this twice in the last several years.
First determine if you can get the PMI removed, the recent FHA loans have pmi for life.
If you can first call the lender to determine the process.
Then probably next will be pay for appraisal and once it's received write a letter.
Fwiw I have done this twice in the last several years.
Posted on 6/10/15 at 7:27 am to LSU6262
Remember PMI stays with the loan for life on FHA loans. Only way to remove it is refi conventional
Edit - beat me by a minute
Edit - beat me by a minute
This post was edited on 6/10/15 at 7:28 am
Posted on 6/10/15 at 7:31 am to LSU6262
Surely your monthly payment will just decrease.
Posted on 6/10/15 at 12:15 pm to PhiTiger1764
When I refinanced a few years ago it just lowered the payment. On my own, I added it to the principle each month. I wanted PMI off, not because of how much my note was a month, but because it wasn't doing anything for me. I couldn't put 20% down at the time of purchase. If you have enough income that you can put it toward the principle, that is what I would do.
This post was edited on 6/10/15 at 12:17 pm
Posted on 6/10/15 at 12:25 pm to PhiTiger1764
.
This post was edited on 3/9/16 at 12:41 pm
Posted on 6/10/15 at 12:29 pm to lsutiger2010
quote:
I purchased my house about two years ago. The value of houses in my neighborhood have skyrocketed since. Can I just get an appraisal to see if what I currently owe is less than 80% on a new appraisal? Or would it require re-financing my loan to drop off PMI with a new appraisal?
Typically the contract is written that you have to pay off 20% of the original loan value, so the value of the house and property have no effect. However, it is simple enough to refinance now that you can if it makes sense.
Posted on 6/10/15 at 7:52 pm to ItNeverRains
quote:
Remember PMI stays with the loan for life on FHA loans. Only way to remove it is refi conventional
This is true for newer loans. Not the case for mine
Posted on 6/11/15 at 11:39 am to LSU6262
This is why you wait until you have 20%
Posted on 6/11/15 at 4:27 pm to Armymann50
At 80% you can request it. Your mortgage servicer will probably ask for an appraisal to make sure that the value has not declined since the original loan.
At 78% it automatically terminates.
At 78% it automatically terminates.
Posted on 6/11/15 at 4:48 pm to LSU6262
Check your closing papers to see if there is an amortization schedule. Mine showed the number of payments with the PMI included, then the number or payments with a lower payment amount after PMI dropped off. There may be a minimum 5 year period before you can request the PMI removal, even if you are below the 80% before the 5 year period.
Posted on 6/11/15 at 4:51 pm to LSU6262
Just like your insurance going up or down or property taxes going up, your escrow contributions change accordingly
If PMI goes away, your mortgage company will no longer bill you that amount
IE if you are paying $1600/mo for principle/intrest/PMI/Escrow and PMI cost you $200/mo, you mortgague company will bill you $1400/mo
if you choose to pay extra it will go to principle if you ask them to.
If PMI goes away, your mortgage company will no longer bill you that amount
IE if you are paying $1600/mo for principle/intrest/PMI/Escrow and PMI cost you $200/mo, you mortgague company will bill you $1400/mo
if you choose to pay extra it will go to principle if you ask them to.
Posted on 6/11/15 at 5:12 pm to LSU6262
quote:
when my PMI is cancelled, will the amount I'm paying for it then go towards my principal? or will my monthly payment decrease?
They trying to get every penny out of you in interest. I guarantee that they won't apply it to principal
Posted on 6/12/15 at 9:17 am to Armymann50
quote:
This is why you wait until you have 20%
Building equity and paying PMI > throwing rent money down the drain until you're 30 years old and have finally saved 20% to put down on a house.
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