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With an FHA Loan... and PMI...QUESTION
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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
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With an FHA Loan... and PMI...QUESTION
If we put down 5% we pay PMI. When does PMI go away? Do we still have to pay PMI if the house appraises for about 100k more than we are buying it for?
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Posted 1/31/10 11:26 AM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
-Lisa-
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Member since 5/05 6530 total posts
Name:
Lisa
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Re: With an FHA Loan... and PMI...QUESTION
PMI is (generally) not required when the loan to value ratio is 80% or less. So if you have 20+% of equity in the house, you should not need to pay PMI.
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| Posted 1/31/10 11:38 AM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: With an FHA Loan... and PMI...QUESTION
I believe that you have to pay PMI until you reach the 20% like PP mentioned and then you have to call the bank to have it removed... I heard they will not automatically do it for you... Why would they, its less $$ for them then and Im sure theres tons of people who just forget about the PMI LOL
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| Posted 1/31/10 12:00 PM |
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lbelle821
Arghhhhh
Member since 2/06 5285 total posts
Name:
Lisa
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Re: With an FHA Loan... and PMI...QUESTION
an FHA loan is a little different...you are required to pay a percentage of PMI at closing (i think 1.75%) plus a mandatory PMI for 5 years regardless of your equity ration in the home.
You do always have the option of refinancing into a regular mortgage once you reach 20% equity and the PMI would go away. But then you just need to weigh out the closing costs vs. the PMI. PMI would be tax deductible yet some of the closing costs wouldn't.
FHA loans can get expensive!
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| Posted 1/31/10 12:14 PM |
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onlylisa
LIF Adolescent
Member since 3/09 740 total posts
Name:
Lisa
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Re: With an FHA Loan... and PMI...QUESTION
Posted by lbelle821
an FHA loan is a little different...you are required to pay a percentage of PMI at closing (i think 1.75%) plus a mandatory PMI for 5 years regardless of your equity ration in the home.
You do always have the option of refinancing into a regular mortgage once you reach 20% equity and the PMI would go away. But then you just need to weigh out the closing costs vs. the PMI. PMI would be tax deductible yet some of the closing costs wouldn't.
FHA loans can get expensive!
Exactly right! Since my house appraised for more than 20% of the purchase price I thought we could do away with our PMI, but nope, we're stuck with it for five years.
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| Posted 1/31/10 8:20 PM |
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Nifheim
allo
Member since 1/09 5476 total posts
Name:
Jennifer
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Re: With an FHA Loan... and PMI...QUESTION
Posted by onlylisa
Posted by lbelle821
an FHA loan is a little different...you are required to pay a percentage of PMI at closing (i think 1.75%) plus a mandatory PMI for 5 years regardless of your equity ration in the home.
You do always have the option of refinancing into a regular mortgage once you reach 20% equity and the PMI would go away. But then you just need to weigh out the closing costs vs. the PMI. PMI would be tax deductible yet some of the closing costs wouldn't.
FHA loans can get expensive!
Exactly right! Since my house appraised for more than 20% of the purchase price I thought we could do away with our PMI, but nope, we're stuck with it for five years.
Yep same here too our house appraised more than 20% and we still have to pay for it for five years.
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| Posted 2/1/10 8:51 AM |
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