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Message
Getting rid of PMI on a house you already live in
Posted on 1/14/15 at 3:01 pm
Posted on 1/14/15 at 3:01 pm
Can someone give me the details on how to make this happen?
This post was edited on 1/14/15 at 3:02 pm
2
Posted on 1/14/15 at 3:04 pm to RandySavage
quote:
Can someone give me the details on how to make this happen?
I cannot.
But could someone else maybe clarify if you have to have 20% paid of the loan or 20% of the appraised value of the house?
For example, I bought my house at $100,000 and I owe $80,000. However, my house now appraises at $120,000. Could I get my PMI dropped?
Posted on 1/14/15 at 3:14 pm to OnTheBrink
I think that generally banks make you have PMI if you don't have at least 20% equity. Once you do you should be able to have them look at it to have it removed.
Posted on 1/14/15 at 3:21 pm to OnTheBrink
Its LTV, so an appraisal will have to be made to see if PMI can come off*
It can go away automatically when you reach 78% of the original LTV.
It can go away automatically when you reach 78% of the original LTV.
This post was edited on 1/14/15 at 3:37 pm
Posted on 1/14/15 at 3:22 pm to Kingwood Tiger
I have heard 5 years of ontime payments or house has increased in value by 20%, or you have paid 20% off of house.
Posted on 1/14/15 at 3:44 pm to RandySavage
what kind of a loan is it, conventional or FHA. if it is a FHA loan that was just taken out the last few years ago, PMI is for the life.
on a conventional loan, it must be at 80% loan to value. hope this helps
on a conventional loan, it must be at 80% loan to value. hope this helps
Posted on 1/14/15 at 5:54 pm to lsu tigerdog
Paid 185 for the house a little over 5 years ago. Fairly certain this was before the PMI for life thing. From my understanding you have to have had the loan for 5 years and have 20% equity to get it removed.
I'm probably fairly close to the 20% but I guess my main question is we re-financed a little over 2 years ago. Does this re-start the 5 year clock or is it 5 years from the original loan?
It's an FHA loan btw...
I'm probably fairly close to the 20% but I guess my main question is we re-financed a little over 2 years ago. Does this re-start the 5 year clock or is it 5 years from the original loan?
It's an FHA loan btw...
Posted on 1/15/15 at 12:08 am to RandySavage
You can refi.
I just refi'd to a 7 year ARM at 3.25% to drop my pmi and reduce payment by 209 bucks. Only paid 2600 in closing cost. I'll make that back in a year.
I just refi'd to a 7 year ARM at 3.25% to drop my pmi and reduce payment by 209 bucks. Only paid 2600 in closing cost. I'll make that back in a year.
This post was edited on 1/15/15 at 12:09 am
Posted on 1/15/15 at 1:05 pm to barry
So as long as the original purchase was over 5 years ago I am eligible to drop PMI once I reach 20%?
I guess the bank would do an appraisal first right? How much does that run, two or three hundred?
I guess the bank would do an appraisal first right? How much does that run, two or three hundred?
Posted on 1/15/15 at 1:19 pm to RandySavage
I just bought my house with an FHA Loan. Appraised value is $105,000, but the purhcase price was only $50,000. I obviously have over 20% in equity. Can one of the experts tell me if I can drop my PMI?
ETA: Just read the post explaining PMI is for life. That is stupid and my lending company did not tell me that when explaining the difference between FHA and conventional. I guess I have to refinance to get rid of it then?
ETA: Just read the post explaining PMI is for life. That is stupid and my lending company did not tell me that when explaining the difference between FHA and conventional. I guess I have to refinance to get rid of it then?
This post was edited on 1/15/15 at 1:21 pm
Posted on 1/15/15 at 2:09 pm to RandySavage
quote:
So as long as the original purchase was over 5 years ago I am eligible to drop PMI once I reach 20%?
30-year loan term : Annual MIP is automatically canceled once the loan reaches 78% loan-to-value and annual MIP has been paid for at least 60 months.
Homeowners should not that LTV calculations are based on the FHA's last known value of the home -- not its current appraised value. For many people, the "last known value" is the value of the home at the date of purchase; the last time the home was FHA-appraised.
Posted on 1/15/15 at 2:10 pm to Redacted
quote:
That is stupid and my lending company did not tell me that when explaining the difference between FHA and conventional. I guess I have to refinance to get rid of it then?
yes
Posted on 1/15/15 at 2:11 pm to RandySavage
quote:
So as long as the original purchase was over 5 years ago I am eligible to drop PMI once I reach 20%?
I guess the bank would do an appraisal first right? How much does that run, two or three hundred?
Your best bet is to raise enough money to have 20% equity in the house, however you have to do this. Have anyone that might be interested in giving you a personal loan that would give them a decent return? You can offer them a pretty nice return and still be better off than throwing your money away on PMI. Then refinance with a traditional 20% down mortgage.
Posted on 1/15/15 at 3:33 pm to barry
quote:
Homeowners should not that LTV calculations are based on the FHA's last known value of the home -- not its current appraised value. For many people, the "last known value" is the value of the home at the date of purchase; the last time the home was FHA-appraised.
So if I were to go to a Chase branch (who now owns my mortgage) they will have this appraised value on hand?
If so I assume they could look at that value and what I owe and tell me exactly how much more I needed to pay to eliminate the PMI correct?
Posted on 1/15/15 at 3:40 pm to RandySavage
quote:
So if I were to go to a Chase branch (who now owns my mortgage) they will have this appraised value on hand?
I'm pretty sure you will have to pay for a new appraisal.
Posted on 1/15/15 at 3:43 pm to MamouTiger65
quote:
I'm pretty sure you will have to pay for a new appraisal.
They won't do a new appraisal, Its the one they have on hand. Thats the point.
And to answer your question, yes, call them and ask them how much more equity you need to get to the 78% threshold.
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