04/26/2008Will the Mortgage company get arid my mortgage insurance?
- OK, I am looking at buying a house and I have only about 10% down. My question is, I will pay additional $1,000 a month to principle and in 2 years I will at a 80% loan to value. Now will the mortgage company with a new appraisel drop my monthly mortage premuims? It is a fannie mae loan. I know I do not qualify for deducting my mortgage insurance premiums due to higher income.
- Best Answer:How long is PMI required?
The answer to this question depends on the mortgage lender. At the time of loan closing, lenders are required to give borrowers a disclosure stating when the PMI premium can be cancelled.
You can read more about it here: http://realestate.msn.com/insurance/Arti...
For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current. "Good guy" lenders Fannie Mae and Freddie Mac will cancel PMI if you ask.
One exception is if your loan is "high-risk." Another is if you have not been current on your payments within the year prior to the time for termination or cancellation. A third is if you have other liens on your property. For these loans, your PMI may continue. Ask your lender or mortgage servicer (a company that collects your payments) for more information about these requirements.
http://www.appraisercentral.com/1998Act....
- Answer:It takes paperwork, but once you have enough equity in your home, you should be able to drop your PMI.
Consider this, though: If you're putting 10% down, you can take out a loan against this equity, and put the money down on your house, bringing up your down payment to 20%. You will have a second loan to pay, but it could be less than the PMI payment you're making. At the very least, at least you're putting the money into your home, instead of paying an insurance premium.
- Answer:PMI doesn't work like that.
For an FHA, you'll pay MIP for 5 years, regardless of your LTV.
PMI is NOT dropped based on a NEW appraisal. It's based on the loan to ORIGINAL value when the loan was first taken out.
People think that all they have to do is get a new appraisal, send it to the bank, and BAM! They drop PMI.
Oh.....how I WISH it were that easy.
Those that tell you that it can be done...don't know how it works.
- Answer:If in 2 years you're at 80%, then if your current mortgage company doesn't give you what you want, move to another company. With the payment record you're expecting the have, there will be lots of good companies eager for your business.
Follow the plan, it sounds like a good one.
- Answer:I have met this kind of situation before,here is the place I found useful.http://mortgage.specialistideas.info/con...