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Message
Removing PMI possible without getting new appraisal?
Posted on 8/25/14 at 5:04 pm
Posted on 8/25/14 at 5:04 pm
Our condo has gone up in value considerably since we bought it. New condos in our community are now selling for ~$40K more than what we bought ours for just 5 months later. With this increase in our equity, I'd like to get the PMI removed from the monthly payments.
Do I just call the mortgage company and ask them what they need to take it off? Is it possible to get it removed without getting a new appraisal on the home?
Do I just call the mortgage company and ask them what they need to take it off? Is it possible to get it removed without getting a new appraisal on the home?
5
Posted on 8/25/14 at 5:07 pm to saintforlife1
You'll need an appraisal to verify the increase in value. $300 or so.
Posted on 8/25/14 at 5:15 pm to hungryone
And normally there's a waiting period in the loan docs. My experience was we had to wait 1 year from purchase.
Posted on 8/25/14 at 5:23 pm to saintforlife1
You're probably gonna have to refi based on waiting periods
It's still probably worth your while though
It's still probably worth your while though
Posted on 8/25/14 at 5:31 pm to hungryone
Thanks. I assumed it would be much higher.
Also, when we closed in April this year, we got 4.5% for 30-year fixed. We put $100K (16%) down on the $600K home. My FICO score was 805 then, and is still around the same now.
Instead of just looking at removing PMI, should I try to refinance and get a lower rate? Is 4.5% too high? Should I consider 7/1 ARM (seeing as how we probably plan to be in this house for 6-7 years only?)
Also, when we closed in April this year, we got 4.5% for 30-year fixed. We put $100K (16%) down on the $600K home. My FICO score was 805 then, and is still around the same now.
Instead of just looking at removing PMI, should I try to refinance and get a lower rate? Is 4.5% too high? Should I consider 7/1 ARM (seeing as how we probably plan to be in this house for 6-7 years only?)
Posted on 8/25/14 at 5:48 pm to saintforlife1
There are some factors at play here that weigh against you.
1). It's a condo which is the most volatile as far as swings in value.
2). You aren't refinancing. The loan needs to season before you can do that.
3). You aren't going to get PMI removed after owning a property, particularly a condo, for 5 months.
1). It's a condo which is the most volatile as far as swings in value.
2). You aren't refinancing. The loan needs to season before you can do that.
3). You aren't going to get PMI removed after owning a property, particularly a condo, for 5 months.
Posted on 8/25/14 at 5:59 pm to saintforlife1
quote:
Is 4.5% too high?
While there may be slightly lower rates, I wouldn't categorize 4.5% as "too high" when it is very comfortably lower than historical averages.
Posted on 8/25/14 at 9:13 pm to saintforlife1
how much is the PMI? Sucks that you couldn't close the 4% gap prior to closing. certainly call the bank and get their thoughts. But they already have you so they aren't going to be willing to part with the PMI just because you ask nicely. It's straight profit to them.
Posted on 8/25/14 at 11:47 pm to C
Yeah the 4% difference was $20K, so it was quite big. Our mortgage is with Central Mortgage. Our bank sold it to Central Mortgage a couple of months after we closed. The PMI is $167 per month.
Posted on 8/26/14 at 7:27 am to saintforlife1
If it's FHA loan, you may never be able to get it off. It depends upon when you bought it. If you bought it before some date (in 2011 I believe), it stays forever. Your only option is to refinance. If you bought it before that date, it stays on for a minimum of 5 years. After that, you would need an appraisal to get it removed.
Posted on 8/26/14 at 7:29 am to C
quote:
But they already have you so they aren't going to be willing to part with the PMI just because you ask nicely. It's straight profit to them.
Incorrect. The "bank" doesn't get to keep a penny of the mortgage insurance. That money goes to the mortgage insurance provider. Just as they do with the real estate taxes and insurance escrow they merely collect the fees and then pay them out.
PMI (yes there is a company that insures loans with that name) and United Guaranty used to be the largest providers of PMI insurance on conventional loans.
This post was edited on 8/26/14 at 7:33 am
Posted on 8/26/14 at 8:42 am to MMauler
If your FHA predates June 3, 2013 you have to pay PMI for 60 months. If your loan is from after June 3, 2013 it stays for the life of your loan. I'm guessing that since he put down $100k he probably wasn't using an FHA loan, although that is admittedly a guess.
Posted on 8/26/14 at 9:25 am to VABuckeye
How long does it take to have PMI removed? Is there a mandatory time frame for this? We closed in Jan 2012. I thought I had to keep it for 60 months minimum.
Edit. Post above me answers my question.
Edit. Post above me answers my question.
This post was edited on 8/26/14 at 9:27 am
Posted on 8/26/14 at 10:04 am to saintforlife1
depending on the PMI company there is at least a 2 yr period before you can have the house re-appraised to drop PMI. Also what ever mortgage guy let you put down 16% and didnt buy out the PMI or at least get you a second mortgage to avoid the PMI sucks at his job. current rates are are going to be slightly lower that 4.5% you can refinance and get rid of the PMI but do not spend your money on a appraisal because the bank will have to order the appraisal. same thing if you want the PMI company to remove the PMI they send out thier appraiser and you pay for it.
Posted on 8/26/14 at 1:12 pm to MMauler
quote:
If it's FHA loan, you may never be able to get it off. It depends upon when you bought it. If you bought it before some date (in 2011 I believe), it stays forever. Your only option is to refinance. If you bought it before that date, it stays on for a minimum of 5 years. After that, you would need an appraisal to get it removed.
It is not a FHA loan. We closed on the house in April this year. It was a new construction. We have made 5 mortgage payments so far.
Posted on 8/26/14 at 1:24 pm to jammintiger
quote:
If your loan is from after June 3, 2013 it stays for the life of your loan
this pisses me off to no end. I guess we can thank the deadbeats who buy more than they can afford for that.
I got my house in 2010 so I'm good, but that just infuriates me on principle.
Posted on 8/26/14 at 3:28 pm to MasCervezas
actually you can thank all those people who said that fannie mae and freddie mac should not be sponsored by the goverment..
Posted on 8/26/14 at 3:52 pm to hawkeye007
i was taking a guess, i'm sure you are right
Posted on 8/27/14 at 1:02 pm to MasCervezas
Pay down your principle.
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