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veeandrich
LIF Infant
Member since 5/06 325 total posts
Name:
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need opinions on Mortgage payment
right now DH and I pay about 72 a month for PMI since we didn't put down 20% on our Coop. We have 3 choices (per our mort company)
1.Send in Lump sum of 14,500
2. Do some sort of renovation (bathroom) and have the Coop reappraised to get rid of PMI
3. Keep paying the PMI
I hesitate to send in a Lump of almost 15 grand since we are saving for a house but we can do it.
or if anyone has another suggestion 
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Posted 1/1/07 7:29 PM  |
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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: need opinions on Mortgage payment
have you been in the house 2 years yet? You can ask for an appraisal without doing a renovation. I think you can ask to have the PMI removed after 2 years if your house appraises high enough to have 20% equity. It's not easy to get the bank to do this but they do it.
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| Posted 1/1/07 7:32 PM |
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Jen2999
Baby girls & beagles rock!
Member since 8/06 10356 total posts
Name:
Jen
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Re: need opinions on Mortgage payment
I couldnt let go of that much savings just for a reduction of 72 a month, especially if you arent planning on staying there forever so I put remodel BR
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| Posted 1/1/07 7:33 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: need opinions on Mortgage payment
renovate - you will add value (and beauty) to your home - the possible elimination of PMI would be icing on the cake
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| Posted 1/1/07 7:37 PM |
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veeandrich
LIF Infant
Member since 5/06 325 total posts
Name:
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Re: need opinions on Mortgage payment
Thanks girls, it is a lot of $ to part with
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| Posted 1/1/07 7:43 PM |
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nyteacher13
Three Under Four!!! :-)
Member since 8/06 6405 total posts
Name:
~ THERESA ~
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Re: need opinions on Mortgage payment
get a new bathroom out of the deal!!!
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| Posted 1/1/07 7:46 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: need opinions on Mortgage payment
renovateing the bathroom is not a sure way of raising your appraisal vaule...it will but will it meet what your looking for.
When do you plan on purchasing a house?
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| Posted 1/1/07 7:55 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: need opinions on Mortgage payment
how long have you been in the house? did you put any $$ down? do you know what similar units are selling for?
you may be able to get rid of PMI without any renovating - depending on the factors above, if the house will appraise for enough (I'm an appraiser - I can check comps for you)
Its definitely worth looking into - I wouldn't do the lump sum payment.
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| Posted 1/1/07 8:01 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: need opinions on Mortgage payment
well, if you think about it...
if you have $14,500 in a savings account yielding 4.5%, you will make about $660 a year in interest...which is $55 a month - so the interest you are making on the savings $ is almost as much as your PMI - so I think taking that $14,500 out of savings isnt a good idea -
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| Posted 1/1/07 8:04 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: need opinions on Mortgage payment
I wouldn't do anything but keep the money where it is
in this market you might not get the money back when you sell- since you are saving for a house- keep the money in savings
citi bank has a 5% savings account
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| Posted 1/1/07 8:09 PM |
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veeandrich
LIF Infant
Member since 5/06 325 total posts
Name:
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Re: need opinions on Mortgage payment
we put down 10% and we've owned it for one year and 4 months. Similar units are selling for around 20-25,000 more than what we paid for it.
I'm thinking we could buy a house in a year to year and a half depending on how the market is. I guess sending in the lump is not the best Idea though,
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| Posted 1/1/07 8:16 PM |
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-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: need opinions on Mortgage payment
Posted by veeandrich
we put down 10% and we've owned it for one year and 4 months. Similar units are selling for around 20-25,000 more than what we paid for it.
I'm thinking we could buy a house in a year to year and a half depending on how the market is. I guess sending in the lump is not the best Idea though,
Based on the above, you can PROBABLY rid yourselves of PMI with just an appraisal. I don't know how much your units are going for, but if the $20-25K increase is at least 10% of what you paid, then you should have 20% equity (your 10% DP + the market increase) - which means you no longer need to pay PMI.
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| Posted 1/1/07 8:20 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: need opinions on Mortgage payment
Posted by -Lisa-
Posted by veeandrich
we put down 10% and we've owned it for one year and 4 months. Similar units are selling for around 20-25,000 more than what we paid for it.
I'm thinking we could buy a house in a year to year and a half depending on how the market is. I guess sending in the lump is not the best Idea though,
Based on the above, you can PROBABLY rid yourselves of PMI with just an appraisal. I don't know how much your units are going for, but if the $20-25K increase is at least 10% of what you paid, then you should have 20% equity (your 10% DP + the market increase) - which means you no longer need to pay PMI.
if units are selling more by them selves, your value will go up without renovations unless those new units have good stuff in them.
most of the appraisel is based off comp units so you should just need an apprasil then PMI should drop soon there after (been told it can take up to 2 months)
We pay PMI also but had we taken out a second loan, we would be paying more for money we really didn't need. We are just waiting for other units to sell in our complex....they are selling 20k higher then we brought but i don't think people are biteing
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| Posted 1/1/07 9:03 PM |
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