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ruby
you rang?
Member since 6/08 5573 total posts
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PMI Removal
Can someone walk me through this? Or point me to a good website? I'm clueless.
We purchased our house 2 years ago with an FHA loan. I think I remember (or maybe not) that it automatically drops off after 5 years but if you've put a certain percentage in the mortgage already it can be removed earlier. Is this right? How would I find out?
Also, we've taken a hit to our credit since we bought the house, does that matter? It was near perfect when we closed.
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Posted 6/27/12 10:07 AM  |
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Prudential Douglas Elliman Real Estate
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: PMI Removal
Here's a link:
fha loans
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| Posted 6/27/12 10:35 AM |
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nrthshgrl
It goes fast. Pay attention.
Member since 7/05 57538 total posts
Name:
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Re: PMI Removal
Ours was fairly simple. We had an inspection done with COMPs. We submitted to our mortgage company & PMI was taken off.
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| Posted 6/27/12 10:38 AM |
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ruby
you rang?
Member since 6/08 5573 total posts
Name:
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Re: PMI Removal
Posted by nrthshgrl
Ours was fairly simple. We had an inspection done with COMPs. We submitted to our mortgage company & PMI was taken off.
Thanks, in your case, how many years had you owned the house at the time?
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| Posted 6/27/12 11:05 AM |
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ruby
you rang?
Member since 6/08 5573 total posts
Name:
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Re: PMI Removal
So according to this, since we're on a 30 yr FHA loan, we're locked in for 5 years no matter what, am I reading that correctly?
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| Posted 6/27/12 11:09 AM |
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PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
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Re: PMI Removal
Posted by ruby
So according to this, since we're on a 30 yr FHA loan, we're locked in for 5 years no matter what, am I reading that correctly?
That's what it looks like.
We bought our house last september and pay PMI. What I remember from our mortgage broker is PMI doesn't AUTOMATICALLY Come off after 5 years. You will pay the PMI until you reach the 20%. 5 yrs, 10 yrs, 15 yrs - whatever it is. Also, if you did pay the 20%, you have to go about getting it taken off. You have to stay on top of it.
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| Posted 6/27/12 11:47 AM |
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ruby
you rang?
Member since 6/08 5573 total posts
Name:
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Re: PMI Removal
Posted by PhyllisNJoe
Posted by ruby
So according to this, since we're on a 30 yr FHA loan, we're locked in for 5 years no matter what, am I reading that correctly?
That's what it looks like.
We bought our house last september and pay PMI. What I remember from our mortgage broker is PMI doesn't AUTOMATICALLY Come off after 5 years. You will pay the PMI until you reach the 20%. 5 yrs, 10 yrs, 15 yrs - whatever it is. Also, if you did pay the 20%, you have to go about getting it taken off. You have to stay on top of it.
We didn't have 20% down, that's why we did an FHA loan. DH is hounding me about getting the PMI (or MIP in FHA cases) dropped and he's not believing me when I tell him we're stuck for at least 5 years.
I suppose the only option would be to refinance and put 20% down but that's really not an option for us. Oh well.
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| Posted 6/27/12 12:03 PM |
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MrsRapz
mahna mahna!
Member since 2/12 1952 total posts
Name:
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Re: PMI Removal
You have to pay the PMI until you have 20% equity. So if the value of the house goes up, you can get another appraisal to get rid of the PMI. Otherwise, it goes away automatically after you've paid down your loan by a certain percentage (i believe it's a little bit over 20%)
I wouldn't refinance even if you had the money since you'd need to pay closing costs. If you had the 20%, you should just pay down the current loan and get an appraisal. Assuming the house value stayed the same or went up, that is.
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| Posted 6/27/12 12:20 PM |
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alli3131
Peanut is here!!!!!!
Member since 5/09 18388 total posts
Name:
Allison
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Re: PMI Removal
Posted by MrsRapz
You have to pay the PMI until you have 20% equity. So if the value of the house goes up, you can get another appraisal to get rid of the PMI. Otherwise, it goes away automatically after you've paid down your loan by a certain percentage (i believe it's a little bit over 20%)
I wouldn't refinance even if you had the money since you'd need to pay closing costs. If you had the 20%, you should just pay down the current loan and get an appraisal. Assuming the house value stayed the same or went up, that is.
This is not the case with FHA. Yes a FHA you are locked in for 5 years no matter what (unless they have changed that since 2009)
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| Posted 6/27/12 12:25 PM |
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MrsRapz
mahna mahna!
Member since 2/12 1952 total posts
Name:
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Re: PMI Removal
Posted by alli3131
Posted by MrsRapz
You have to pay the PMI until you have 20% equity. So if the value of the house goes up, you can get another appraisal to get rid of the PMI. Otherwise, it goes away automatically after you've paid down your loan by a certain percentage (i believe it's a little bit over 20%)
I wouldn't refinance even if you had the money since you'd need to pay closing costs. If you had the 20%, you should just pay down the current loan and get an appraisal. Assuming the house value stayed the same or went up, that is.
This is not the case with FHA. Yes a FHA you are locked in for 5 years no matter what (unless they have changed that since 2009)
whoops, sorry for the mis-information then ... i didn't realize that.
Thanks for the correction! 
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| Posted 6/27/12 12:31 PM |
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NoStressMom
My Heart and Soul
Member since 5/05 11122 total posts
Name:
D
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Re: PMI Removal
Posted by alli3131
Posted by MrsRapz
You have to pay the PMI until you have 20% equity. So if the value of the house goes up, you can get another appraisal to get rid of the PMI. Otherwise, it goes away automatically after you've paid down your loan by a certain percentage (i believe it's a little bit over 20%)
I wouldn't refinance even if you had the money since you'd need to pay closing costs. If you had the 20%, you should just pay down the current loan and get an appraisal. Assuming the house value stayed the same or went up, that is.
This is not the case with FHA. Yes a FHA you are locked in for 5 years no matter what (unless they have changed that since 2009)
yup this is correct we did refi instead we were with Wells Fargo
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| Posted 6/27/12 12:39 PM |
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ruby
you rang?
Member since 6/08 5573 total posts
Name:
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Re: PMI Removal
Posted by NoStressMom
Posted by alli3131
Posted by MrsRapz
You have to pay the PMI until you have 20% equity. So if the value of the house goes up, you can get another appraisal to get rid of the PMI. Otherwise, it goes away automatically after you've paid down your loan by a certain percentage (i believe it's a little bit over 20%)
I wouldn't refinance even if you had the money since you'd need to pay closing costs. If you had the 20%, you should just pay down the current loan and get an appraisal. Assuming the house value stayed the same or went up, that is.
This is not the case with FHA. Yes a FHA you are locked in for 5 years no matter what (unless they have changed that since 2009)
yup this is correct we did refi instead we were with Wells Fargo
You refi-ed into a conventional loan?
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| Posted 6/27/12 12:43 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: PMI Removal
With an FHA loan you are stuck paying the pmi for 5 years, regardless of how much you pay towards your principal...
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| Posted 6/27/12 12:48 PM |
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