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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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PMI-Is it true?
We bought in 05 and had PMI. With equity (20%) it is dropped.
I heard that they changed it so that now if you have PMI, it's indefinite for the life of the loan. Is that true?
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Posted 10/9/14 6:12 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
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Re: PMI-Is it true?
When we purchased we were told it has to stay on for 60 months because it was an FHA loan. After the 60 months we have to refi.
If this is something new, then I am going to assume that it would only apply to people obtaining loans now. I would think you would need to sign new loan documents to approve it.
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| Posted 10/9/14 6:34 PM |
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PMI-Is it true?
It is something new but only if you bought this year
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| Posted 10/9/14 6:50 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: PMI-Is it true?
It's for new loans going forward, but keep in mind if you refinance and have to have pmi it will be for life of loan 
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| Posted 10/9/14 7:03 PM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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PMI-Is it true?
We had PMI for about 26 months, ours is a conventional loan. We purchased for $50k less than the house appraised for so we just had to wait until we showed we could pay regularly. We could have had it taken off earlier but they needed a new appraisal and we were in the middle of renovations so we held off.
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| Posted 10/9/14 8:08 PM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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Re: PMI-Is it true?
Posted by Mrs213
It's for new loans going forward, but keep in mind if you refinance and have to have pmi it will be for life of loan
So basically, when we buy a new place, and don't put down 20%, we're stuck? Is there a workaround?
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| Posted 10/9/14 8:36 PM |
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Teach723
Have faith. Believe. Dream.
Member since 8/10 2356 total posts
Name:
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Re: PMI-Is it true?
Posted by MissJones
Posted by Mrs213
It's for new loans going forward, but keep in mind if you refinance and have to have pmi it will be for life of loan
So basically, when we buy a new place, and don't put down 20%, we're stuck? Is there a workaround?
Isn't this only for FHA loans?
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| Posted 10/9/14 9:37 PM |
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LuckyStar
LIF Adult
Member since 7/14 7274 total posts
Name:
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Re: PMI-Is it true?
Posted by Teach723
Posted by MissJones
Posted by Mrs213
It's for new loans going forward, but keep in mind if you refinance and have to have pmi it will be for life of loan
So basically, when we buy a new place, and don't put down 20%, we're stuck? Is there a workaround?
Isn't this only for FHA loans?
Yes, it's only for FHA. We put less than 20% down on a conventional loan and can apply to have the PMI removed once we reach 20% equity. We do not have to refinance in order to get rid of it.
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| Posted 10/9/14 9:47 PM |
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newbie00
LIF Adult
Member since 3/11 1191 total posts
Name:
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PMI-Is it true?
Its only for recently obtained FHA loans not conventional.
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| Posted 10/9/14 10:09 PM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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PMI-Is it true?
Ohhh' thank you for clarifying that!
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| Posted 10/9/14 11:00 PM |
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BriBri2u
L'amore vince sempre
Member since 5/05 9320 total posts
Name:
Mrs. B
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Re: PMI-Is it true?
Posted by MissJones
Ohhh' thank you for clarifying that!
I just panicked reading this thread until the clarification post 
I told you - we are in the boat rowing along right next to you guys
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| Posted 10/10/14 9:30 AM |
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jessnbrian
Only God knows His plan for us
Member since 4/13 7238 total posts
Name:
Jessica
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Re: PMI-Is it true?
Posted by LuckyStar
Posted by Teach723
Posted by MissJones
Posted by Mrs213
It's for new loans going forward, but keep in mind if you refinance and have to have pmi it will be for life of loan
So basically, when we buy a new place, and don't put down 20%, we're stuck? Is there a workaround?
Isn't this only for FHA loans?
Yes, it's only for FHA. We put less than 20% down on a conventional loan and can apply to have the PMI removed once we reach 20% equity. We do not have to refinance in order to get rid of it.
this is what we did after just over 2 years of having the loan... and keep in mind, if the house appraises for MORE than what you are paying for it, you can use the APPRAISAL price and not the sale price (that's what we did) because it means you automatically have more equity in the house.
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| Posted 10/10/14 11:01 AM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: PMI-Is it true?
i have a FHA loan with lifetime PMI. BUT once i have enough equity in the house i can refi into a conventional loan and remove the PMI.
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| Posted 10/10/14 11:49 AM |
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DelaneyB
LIF Infant
Member since 10/14 68 total posts
Name:
Delaney
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Re: PMI-Is it true?
It's something new, I've heard the same thing. It's such B.S. if you ask me. Just another way to rake us over the coals and take more money from us.
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| Posted 10/10/14 3:43 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: PMI-Is it true?
Posted by DelaneyB
It's something new, I've heard the same thing. It's such B.S. if you ask me. Just another way to rake us over the coals and take more money from us.
Not really. With these low down payment FHA loans you are asking the bank to take on a huge liability in the event you default. They aren't going to take on this added liability for free.
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| Posted 10/10/14 5:52 PM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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Re: PMI-Is it true?
Posted by BriBri2u
Posted by MissJones
Ohhh' thank you for clarifying that!
I just panicked reading this thread until the clarification post
I told you - we are in the boat rowing along right next to you guys
Haha, so true. Just keep rowing, just keep rowing...
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| Posted 10/11/14 12:44 AM |
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