| Posted By |
Message |
blu6385
Member since 5/08 8351 total posts
Name:
|
Anyone know info about PMI?
I bought my house using a FHA loan I was required to get the PMI not sure if its because it was an FHA loan/and or I didn't put a lot of money down.
I know I bought my house before they made the change that you cant drop the PMI. I was thinking of asking my mortgage company to look into if I meet the requirements to drop it.
My question is do I want to drop it. What exactly does the PMI cover?
|
Posted 2/27/18 11:37 AM  |
| |
|
Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
b2b777
LIF Adult
Member since 9/09 4474 total posts
Name:
|
Anyone know info about PMI?
YES you do. This is money they charged you because you put less than 20% down. If you have your house appraised and you owe less than 75% on your house to the lender they should drop that PMI.
|
| Posted 2/27/18 12:47 PM |
| |
|
mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
|
Anyone know info about PMI?
PMI is extra money you're paying because you didn't put 20% down. You will continue to pay it until you've paid off 20%. If you are able to refinance at a lower rate than when you bought, it may be worth refinancing in hopes of being able to drop the PMI
|
| Posted 2/27/18 1:18 PM |
| |
|
Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
|
Re: Anyone know info about PMI?
PMI is if you have less than 20% down BUT you have to pay off to 22-25% to get it removed.
|
| Posted 2/27/18 1:46 PM |
| |
|
MrsT809
LIF Adult
Member since 9/09 12167 total posts
Name:
|
Anyone know info about PMI?
Yes, you definitely want to drop it as soon as you possibly can! It's money thrown away. I think it's more a protection for the bank since you're borrowing such a high percentage of the value of the home.
We refinanced as soon as we owed less than 80% (both bc we paid down our loan and the home's value had gone up).
|
| Posted 2/27/18 2:08 PM |
| |
|
chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
|
Re: Anyone know info about PMI?
Posted by Mrs&MrsK
PMI is if you have less than 20% down BUT you have to pay off to 22-25% to get it removed.
It doesn't necessarily have to be that you've paid off 22-25%, but you have to have that much equity in the house (through paying off and/or appreciation)
|
| Posted 2/27/18 2:09 PM |
| |
|
blu6385
Member since 5/08 8351 total posts
Name:
|
Re: Anyone know info about PMI?
So it doesn't do anything personally for me. The insurnace doesn't really cover anything say for example me or my DH lose our job would it cover payments?
I ask because one of my DH friend lost his job a while back and I remember my DH told me he had some insurance or something that covered the mortgage payment for a several months.
Now I could be making this up and got the story completely wrong or the person could have been lying 
|
| Posted 2/27/18 3:32 PM |
| |
|
PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
|
Re: Anyone know info about PMI?
Posted by chilltocam
Posted by Mrs&MrsK
PMI is if you have less than 20% down BUT you have to pay off to 22-25% to get it removed.
It doesn't necessarily have to be that you've paid off 22-25%, but you have to have that much equity in the house (through paying off and/or appreciation)
I thought this too but with an FHA loan, you must be at least 5 years form loan date and pay off 22% AND you cannot get the house reappraised !! With regular mortgage w PMI you can. But with FHa (only needing 3.5% down to buy home) you can’t re appraise house. It goes by original appraisal.
We hit 5 years 1.5 years ago and called Wells Fargo to ask what we need to do. They explained this to us because we are FHA. We would be paying PMI up until year 10 of our loan. So we sent an extra $1k towards principal every month for 1.5 years. Wasn’t easy, but we are PMI free as of our April mortgage statement.
|
| Posted 2/27/18 3:48 PM |
| |
|
|
|
Re: Anyone know info about PMI?
Posted by blu6385
So it doesn't do anything personally for me. The insurnace doesn't really cover anything say for example me or my DH lose our job would it cover payments?
I ask because one of my DH friend lost his job a while back and I remember my DH told me he had some insurance or something that covered the mortgage payment for a several months.
Now I could be making this up and got the story completely wrong or the person could have been lying
It does nothing for you. The insurance doesn't cover you. It covers your mortgage company so if you default and your house is worth less than what's owed, the insurance will make up the difference to the bank. Banks prefer 20% because that's considered a safe margin so market values won't drop lower than what is owed. If you make a smaller down payment, it increases the chance that the market value will drop below the loan amount (and your considered a higher risk for default), so they make you buy them protection.
|
| Posted 2/27/18 3:54 PM |
| |
|
Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
|
Anyone know info about PMI?
i had to refinance into a conventional loan to remove PMI. i got my original loan in 2014.
|
| Posted 2/27/18 5:18 PM |
| |
|
SweetSarj
LIF Adult
Member since 10/09 1592 total posts
Name:
|
Re: Anyone know info about PMI?
Posted by PhyllisNJoe
Posted by chilltocam
Posted by Mrs&MrsK
PMI is if you have less than 20% down BUT you have to pay off to 22-25% to get it removed.
It doesn't necessarily have to be that you've paid off 22-25%, but you have to have that much equity in the house (through paying off and/or appreciation)
I thought this too but with an FHA loan, you must be at least 5 years form loan date and pay off 22% AND you cannot get the house reappraised !! With regular mortgage w PMI you can. But with FHa (only needing 3.5% down to buy home) you can’t re appraise house. It goes by original appraisal.
We hit 5 years 1.5 years ago and called Wells Fargo to ask what we need to do. They explained this to us because we are FHA. We would be paying PMI up until year 10 of our loan. So we sent an extra $1k towards principal every month for 1.5 years. Wasn’t easy, but we are PMI free as of our April mortgage statement.
We also have an FHA loan. We hit 5 years last year and paid down our mortgage in October to get rid of the PMI. Our mortgage is now $500 less.
|
| Posted 2/27/18 9:03 PM |
| |
|
Mrs&MrsK
i need sleep ;-)
Member since 2/14 2008 total posts
Name:
L
|
Re: Anyone know info about PMI?
Posted by PhyllisNJoe
Posted by chilltocam
Posted by Mrs&MrsK
PMI is if you have less than 20% down BUT you have to pay off to 22-25% to get it removed.
It doesn't necessarily have to be that you've paid off 22-25%, but you have to have that much equity in the house (through paying off and/or appreciation)
I thought this too but with an FHA loan, you must be at least 5 years form loan date and pay off 22% AND you cannot get the house reappraised !! With regular mortgage w PMI you can. But with FHa (only needing 3.5% down to buy home) you can’t re appraise house. It goes by original appraisal.
We hit 5 years 1.5 years ago and called Wells Fargo to ask what we need to do. They explained this to us because we are FHA. We would be paying PMI up until year 10 of our loan. So we sent an extra $1k towards principal every month for 1.5 years. Wasn’t easy, but we are PMI free as of our April mortgage statement.
WOW FHA is such a pain in the butt and no one tells you why until you are already stuck in it and/or selling to someone in it... 
|
| Posted 2/28/18 8:06 AM |
| |
|
blu6385
Member since 5/08 8351 total posts
Name:
|
Re: Anyone know info about PMI?
Thanks I called and I right now can't drop it. I have to pay more off. I am a little annoyed cause they tell you you can drop it in 5 years but don't tell you that you have to pay extra to get it off  I can maybe get an appraisal to see if my house is appraises more than I will be able to drop it
|
| Posted 2/28/18 8:46 AM |
| |
|
Pomegranate5
LIF Adult
Member since 2/11 4798 total posts
Name:
Pomegranate5
|
Re: Anyone know info about PMI?
Posted by blu6385
Thanks I called and I right now can't drop it. I have to pay more off. I am a little annoyed cause they tell you you can drop it in 5 years but don't tell you that you have to pay extra to get it off I can maybe get an appraisal to see if my house is appraises more than I will be able to drop it
Check with your bank. Mine won't allow a new appraisal - they will only go by the appraisal from five years ago.
|
| Posted 2/28/18 11:35 AM |
| |
|
blu6385
Member since 5/08 8351 total posts
Name:
|
Re: Anyone know info about PMI?
Posted by Pomegranate5
Posted by blu6385
Thanks I called and I right now can't drop it. I have to pay more off. I am a little annoyed cause they tell you you can drop it in 5 years but don't tell you that you have to pay extra to get it off I can maybe get an appraisal to see if my house is appraises more than I will be able to drop it
Check with your bank. Mine won't allow a new appraisal - they will only go by the appraisal from five years ago.
thanks when I called I asked. They said I could and they are going to send me paperwork to look over. I have to use their appraisal and pay for it out of pocket. I will think about depending on the cost to see if its worth going through the process
|
| Posted 2/28/18 3:02 PM |
| |
|
Mrs-D-Girl
Love my fur baby
Member since 8/07 5183 total posts
Name:
|
Re: Anyone know info about PMI?
Posted by blu6385
Thanks I called and I right now can't drop it. I have to pay more off. I am a little annoyed cause they tell you you can drop it in 5 years but don't tell you that you have to pay extra to get it off I can maybe get an appraisal to see if my house is appraises more than I will be able to drop it
I am in the same boat and it's so frustrating!!! I thought after 5 years I was done 
|
| Posted 2/28/18 3:07 PM |
| |
|
PhyllisNJoe
My Box Is Broken
Member since 6/11 9145 total posts
Name:
Phyllis
|
Re: Anyone know info about PMI?
Posted by blu6385
Posted by Pomegranate5
Posted by blu6385
Thanks I called and I right now can't drop it. I have to pay more off. I am a little annoyed cause they tell you you can drop it in 5 years but don't tell you that you have to pay extra to get it off I can maybe get an appraisal to see if my house is appraises more than I will be able to drop it
Check with your bank. Mine won't allow a new appraisal - they will only go by the appraisal from five years ago.
thanks when I called I asked. They said I could and they are going to send me paperwork to look over. I have to use their appraisal and pay for it out of pocket. I will think about depending on the cost to see if its worth going through the process
if it's an FHA Loan (government loan) it goes by the original appraisal. The only thing you can do is refinance and go through the whole closing costs, etc process. We looked into it. It would have cost us no less than 7-8k to refinance, so we chose to pay extra payments (rather take that 7-8 k and put it towards our principal)
|
| Posted 2/28/18 3:11 PM |
| |
|
