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chellynyc
LIF Infant
Member since 4/06 164 total posts
Name:
Michelle
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Heloc question
We put 5% down on our house and took a 95% mortgage, so we have PMI. This route worked out better for us.
We have done a lot of work in the house but we don't feel that we have done enough yet, where we can have our PMI dropped.
But, can we take out a HELOC for the 5% we put down?
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Posted 8/16/06 10:14 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Heloc question
Posted by chellynyc
We put 5% down on our house and took a 95% mortgage, so we have PMI. This route worked out better for us.
We have done a lot of work in the house but we don't feel that we have done enough yet, where we can have our PMI dropped.
But, can we take out a HELOC for the 5% we put down?
You can take out a loan if your loan to value LTV is not more than 80%. The bank will appraise the house to determine if your house will appraise for enough money to allow you to take out equity. It will be based on what your house is worth and how much you owe on the mortgage pretty much.
Along with that is your credit score..financing situation..etc..
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| Posted 8/16/06 10:21 AM |
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Eva Luna
Be kind...life's hard!
Member since 8/05 4750 total posts
Name:
God, bless & heal my DH, JenG's DH Rob & DebG
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Re: Heloc question
Thanks for the ? chelly...I was also wondering, how much does your house have to appreciate for the PMI to be dropped? And do you have to be in it for a year?
We financed 97% so we also have PMI, but the house value has gone up in the 4 months (almost) we've been there.
How do I get rid of PMI? 
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| Posted 8/16/06 10:38 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Heloc question
Sasha, start with your bank..from what I've been told, it's not easy to get rid of your PMI and some banks won't consider dropping it off right away even if your home has appraised much higher. Having said that, give your bank a call and see what their rules are. I'm sure it varies from bank to bank..
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| Posted 8/16/06 10:40 AM |
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Eva Luna
Be kind...life's hard!
Member since 8/05 4750 total posts
Name:
God, bless & heal my DH, JenG's DH Rob & DebG
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Re: Heloc question
Posted by Blu-ize
Sasha, start with your bank..from what I've been told, it's not easy to get rid of your PMI and some banks won't consider dropping it off right away even if your home has appraised much higher. Having said that, give your bank a call and see what their rules are. I'm sure it varies from bank to bank..
Thanks Sue baby...I'll do that! 
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| Posted 8/16/06 10:42 AM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Heloc question
Posted by sasha
Posted by Blu-ize
Sasha, start with your bank..from what I've been told, it's not easy to get rid of your PMI and some banks won't consider dropping it off right away even if your home has appraised much higher. Having said that, give your bank a call and see what their rules are. I'm sure it varies from bank to bank..
Thanks Sue baby...I'll do that!
Good luck! I hope they drop that right off your payment!
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| Posted 8/16/06 10:44 AM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: Heloc question
If I recall correctly from when I had it on my co-op, you can have PMI dropped after you have held the mortgage for 2 years or more and if your Loan to Value is less than 80%.
With the bank I used, even if your mortgage works out to be less than 80% of the total value, you still can't have PMI dropped until you have held it for 2 years. Unless you do a refinance, that's how I got mine dropped, which was better for me at the time because the rates were so low.
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| Posted 8/16/06 10:49 AM |
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chellynyc
LIF Infant
Member since 4/06 164 total posts
Name:
Michelle
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Re: Heloc question
I called our bank (MLN) and I would have to submit a letter requesting that PMI be dropped along with a $400 check. They then have an appraiser come out and they will drop the PMI if it appraises for more. But, if it doesn't we wasted $400 - so we're not going to do it at this time because we aren't confident enough yet.
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| Posted 8/16/06 10:49 AM |
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Eva Luna
Be kind...life's hard!
Member since 8/05 4750 total posts
Name:
God, bless & heal my DH, JenG's DH Rob & DebG
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Re: Heloc question
Posted by chellynyc
I called our bank (MLN) and I would have to submit a letter requesting that PMI be dropped along with a $400 check. They then have an appraiser come out and they will drop the PMI if it appraises for more. But, if it doesn't we wasted $400 - so we're not going to do it at this time because we aren't confident enough yet.
OMG that stinks!! 
These banks are so much fun...
Being that my taxes are going to be double this year (they'll be normal next year, but I got screwed by the previous owner) I think I'm going to cry about my mortgage payment until 2007.  I asked my sister and I have to be in the house at least a year! 
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| Posted 8/16/06 10:51 AM |
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