- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
PMI
Posted on 7/26/23 at 10:15 am
Posted on 7/26/23 at 10:15 am
Someone told me that if you haven't been late on your mortgage payments in a year or two, sometimes they will take the PMI off even if you haven't met the 20%. Has anyone ever heard of this before?
6
Posted on 7/26/23 at 10:23 am to mitchel1128
I’ve never not met the 20%, and neither should any homebuyer.
Posted on 7/26/23 at 10:25 am to BabyTac
My first home I paid PMI but as a general rule, I’d agree with the statement.
Posted on 7/26/23 at 10:25 am to mitchel1128
No, I've never heard of that.
But you can request an appraisal be done by your mortgage servicer, which you have to pay for, and if your LTV is 80% or less, they will drop PMI. Use Redfin, Zillow, and your real estate agent to get an idea what your property might currently appraise for. If you think you could be at 80% LTV or lower, go ahead and request the appraisal. Depending on the type of appraisal (desktop or in person) it could cost you anywhere from $150 - $700.
But you can request an appraisal be done by your mortgage servicer, which you have to pay for, and if your LTV is 80% or less, they will drop PMI. Use Redfin, Zillow, and your real estate agent to get an idea what your property might currently appraise for. If you think you could be at 80% LTV or lower, go ahead and request the appraisal. Depending on the type of appraisal (desktop or in person) it could cost you anywhere from $150 - $700.
This post was edited on 7/26/23 at 10:27 am
Posted on 7/26/23 at 10:26 am to BabyTac
This train of thought had many locking in a 6% rate as opposed to a 3% rate. And it had nothing to do with the guy's question.
Posted on 7/26/23 at 10:45 am to mitchel1128
I think someone told you some BS
Posted on 7/26/23 at 10:59 am to StreamsOfWhiskey
quote:
My first home I paid PMI but as a general rule, I’d agree with the statement.
Same.
And like the other poster said, I think someone doesn't know what they're talking about.
Posted on 7/26/23 at 11:23 am to mitchel1128
quote:
sometimes they will take the PMI off even if you haven't met the 20%.
Sometimes they never take it off.
Sometimes they take it off when you hit 78% of the original Loan To Value.
Sometimes they charge you MIP and you never pay PMI to begin with.
There are too many different types of mortgages to just offer a blanket statement like that.
But Fannie, Freddie, FHA,VA, and USDA do not operate in that fashion.
Posted on 7/26/23 at 11:31 am to BabyTac
quote:this line of archaic thinking absolutely fricked over 1,000s of people who didn’t take advantage of the historic low interest rates these last few years
I’ve never not met the 20%, and neither should any homebuyer.
So now, they get to lay $100 more for the lifetime of their mortgage instead of $250 more for a few years only.
Genius
This post was edited on 7/26/23 at 11:34 am
Posted on 7/26/23 at 11:36 am to BabyTac
quote:
I’ve never not met the 20%, and neither should any homebuyer.
I bought in 2020 at 2.75% interest on 8% down for a $235k house. My PMI payment is $46/month.
It’s now appraising for $385k in 2023 with interest rates around 6-7%.
Which would have been the better deal? Waiting the few years to save up to hit 20% or eating the $46/month?
This post was edited on 7/26/23 at 11:37 am
Posted on 7/26/23 at 11:47 am to StringedInstruments
quote:
I bought in 2020 at 2.75% interest on 8% down for a $235k house. My PMI payment is $46/month.
It’s now appraising for $385k in 2023 with interest rates around 6-7%.
If you're still paying PMI, you should've already requested an appraisal to drop PMI with those numbers you've presented. You should've requested that back when the anticipated appraisal value was around $270-275k. You've been paying PMI much longer than you've needed to.
quote:
Which would have been the better deal? Waiting the few years to save up to hit 20% or eating the $46/month?
You made the right decision in 2020, but didn't request PMI appraisal/drop as soon as you could've, if you're still paying it.
This post was edited on 7/26/23 at 11:57 am
Posted on 7/26/23 at 12:01 pm to lsupride87
quote:
this line of archaic thinking absolutely fricked over 1,000s of people who didn’t take advantage of the historic low interest rates these last few years
Yup, that PMI would be fricking meaningless if you bought a home in 2019 in this area. You would have made a few thousand percent more in home appreciation.
Posted on 7/26/23 at 12:30 pm to ColoradoAg03
quote:
You made the right decision in 2020, but didn't request PMI appraisal/drop as soon as you could've, if you're still paying it.
I’ll make the call today.
Posted on 7/26/23 at 12:53 pm to StringedInstruments
quote:
I’ll make the call today.
If they give you an option of what type of appraisal (desktop or in-person), take the cheapest option which will almost certainly be desktop. That is assuming your estimate of $385k, or anywhere above $300k, is safely correct.
This post was edited on 7/26/23 at 12:54 pm
Posted on 7/26/23 at 12:56 pm to StringedInstruments
quote:
Which would have been the better deal?
Paying cash and not having to beg for a loan.
Posted on 7/26/23 at 1:00 pm to ColoradoAg03
quote:
If you're still paying PMI, you should've already requested an appraisal to drop PMI with those numbers you've presented. You should've requested that back when the anticipated appraisal value was around $270-275k. You've been paying PMI much longer than you've needed to.
Some mortgages are pretty clear that PMI will not be dropped until 78% of the original value.
Posted on 7/26/23 at 1:13 pm to jmtigers
quote:
Some mortgages are pretty clear that PMI will not be dropped until 78% of the original value.
That's for mandatory automatic PMI termination for all mortgage servicers.
He's somewhere around 50-60% LTV, so he definitely can drop PMI though the reappraisal process and has been able to do so for some time now.
This post was edited on 7/26/23 at 1:15 pm
Posted on 7/26/23 at 1:15 pm to BabyTac
Is the username Boomer taken?
Posted on 7/26/23 at 1:16 pm to BabyTac
quote:
Paying cash and not having to beg for a loan.
Wut. Using the poster above that got 2.75% on a mortgage with negligible PMI, it would have been idiotic for him to either 1) pay cash or 2) passed on the 2.75% to avoid PMI.
Posted on 7/26/23 at 1:22 pm to ColoradoAg03
quote:
That's for mandatory automatic PMI termination for all mortgage servicers.
Not FHA with under 10% downpayment.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News