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Jacquelina
LIF Adolescent
Member since 10/11 767 total posts
Name:
Jacqueline
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PMI removal
Does anyone know how to apply to have PMI removed on your mortgage?
Has anyone ever been successful?
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Posted 3/24/15 9:43 AM  |
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Kitten1929
LIF Adult
Member since 1/13 6040 total posts
Name:
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PMI removal
Depends on the rules when you purchased. We have to show either 20% equity via an appraisal or at the 5 year mark it will automatically fall off.
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| Posted 3/24/15 9:49 AM |
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Pomegranate5
LIF Adult
Member since 2/11 4798 total posts
Name:
Pomegranate5
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Re: PMI removal
We purchased in 2012 with FHA financing and I was told it was 20% equity AND 5 years. For us it won't come off automatically. Or if we have 20% equity we can refinance with a conventional loan.
Shortly after we purchased I believe the rules changed and now with FHA financing it will never come off. You will have to refinance to get rid of it.
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| Posted 3/24/15 10:07 AM |
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Jacquelina
LIF Adolescent
Member since 10/11 767 total posts
Name:
Jacqueline
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Re: PMI removal
This is what our loan agreement as well...5 years or 20% equity. I just wasnt sure if there was a way to apply for removal sooner..
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| Posted 3/24/15 10:13 AM |
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Re: PMI removal
Posted by Jacquelina
This is what our loan agreement as well...5 years or 20% equity. I just wasnt sure if there was a way to apply for removal sooner..
It doesn't automatically fall off after 5 years.
With an FHA loan, prior to the new rules which made PMI permanent, you HAD to wait 5 years to have pmi removed, regardless of your equity. Then, when the 5 years passed, it was not automatic -- you still had to apply to the bank to have it removed and show you had adequate equity. But under the old FHA rules, the 5 years of pmi was the minimum, equity or not.
With a conventional loan, it's just about the equity (no time restraints).
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| Posted 3/24/15 11:05 AM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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PMI removal
What about this? If a house appraised for more than the sale price, how does that affect pm I?
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| Posted 3/24/15 2:43 PM |
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Jacquelina
LIF Adolescent
Member since 10/11 767 total posts
Name:
Jacqueline
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Re: PMI removal
Posted by MissJones
What about this? If a house appraised for more than the sale price, how does that affect pm I?
this is my question as well.
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| Posted 3/24/15 3:00 PM |
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Jacquelina
LIF Adolescent
Member since 10/11 767 total posts
Name:
Jacqueline
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Re: PMI removal
Posted by Century 21 Dallow - Christine Braun
Posted by Jacquelina
This is what our loan agreement as well...5 years or 20% equity. I just wasnt sure if there was a way to apply for removal sooner..
It doesn't automatically fall off after 5 years.
With an FHA loan, prior to the new rules which made PMI permanent, you HAD to wait 5 years to have pmi removed, regardless of your equity. Then, when the 5 years passed, it was not automatic -- you still had to apply to the bank to have it removed and show you had adequate equity. But under the old FHA rules, the 5 years of pmi was the minimum, equity or not.
With a conventional loan, it's just about the equity (no time restraints).
Thank you for the explanation, Christine.
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| Posted 3/24/15 3:01 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 removal
We did, conventional loan, we purchased the house for $50K less than it appraised for, we purchased with over 20% equity but the mortgage company wanted to see payment history before removing & wanted an updated appraisal. 2 years after we purchased, our PMI was removed, without the new appraisal (though we told them we were prepared to pay for a new appraisal). That's $250 every month we are now putting towards our principle instead of PMI.
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| Posted 3/24/15 3:07 PM |
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newbie00
LIF Adult
Member since 3/11 1191 total posts
Name:
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PMI removal
Best bet is to contact your mortgage company to find out what the procedures are. It will have to be a written request and an appraisal will most likely be needed
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| Posted 3/24/15 5:01 PM |
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OhBaby2
LIF Infant
Member since 1/15 309 total posts
Name:
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Re: PMI removal
We are 3 years into our FHA mortgage with the same conditions, 5 years & 20% equity, however, we have decided to refinance into a conventional mortgage... we were able to go from a 30 year FHA to a 20 year conventional and keep our monthly payment the same, since the money that was going towards PMI will be going towards P&I instead, plus we save 7 years and a heck of a lot of interest in the long term.
Not sure if this is an option for your financial situation, but we were lucky enough to have our home appraise well above what we needed it to to have the 20% and be able to roll in our closing costs. Maybe this is worth looking into?
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| Posted 3/25/15 2:52 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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PMI removal
Are you sure it doesn't automatically come off when you've reached the criteria? I'm only asking because I noticed every few months my pmi goes down by a few dollars...
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| Posted 3/25/15 9:45 PM |
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