View Full Version : Private Morgage Insurance elimination
Been way too long since we last thought of doing this, and with a probable Interest Rate increase, we need to start the process. Our mortgage is currently with Wells Fargo and I hate dealing with them. Any local businesses that you can recommend? Thanks
We are using Northpointe for our upcoming home purchase. I have nothing to compare them to, but the head lender person (Krystal) we have been dealing with has been responsive, even after business hours.
fitterjohn
03-09-2017, 11:12
If you have a bank of Colorado near you I have done 2 refinance s with them and won't ever even go through anyone else to get a loan because of the good service I get (my girlfriend writes loans elsewhere for a living so if that's not a good endorsement idk what is)
funkymonkey1111
03-09-2017, 12:37
Are you looking to get rid of private mortgage insurance or are you looking to refi your house?
Are you looking to get rid of private mortgage insurance or are you looking to refi your house?
Rid of PMI
Circuits
03-09-2017, 13:17
When I ditched my PMI, I just contacted the mortgage company when I got my equity above 10%, and requested that they discontinue PMI. They did, and that amount dropped out of my monthly payment, and stopped showing up in the escrow account.
When I refinanced, I was already at like 70% LTV, so no PMI was ever added. I just refinanced what I owed and didn't try to take money out against appreciated value.
funkymonkey1111
03-09-2017, 13:29
What circuits said is right. If you're at whatever threshold the mortgagor sets on loan to value, just contact them. If they dispute the appreciation in value, you may need to spring for an appraisal
Ok. I'll call WF and see what they can do.
funkymonkey1111
03-09-2017, 14:00
Ok. I'll call WF and see what they can do.
Probably a good idea to know your loan to value. I would assume it would make the call go smoother
Call your mortgage company and see if they can remove PMI... WITHOUT a refi.
Citi mortgage removed my PMI without a refi, i had to order an appraisal with Citi for $475. Process was painless. The number was almost spot on to what zillow had me at.
Didn't they change the rules on PMI that said it stays on for the life of the loan, no matter what? I think that rule change was 1-2 years ago? So he'd have to refi to get out if that were the case, right? But if it's an older loan, you're probably on the old rules.
DenverGP
03-09-2017, 15:47
Didn't they change the rules on PMI that said it stays on for the life of the loan
Recent FHA-insured loans require payment of mortgage insurance premiums for the life of the loan. FHA mortgage insurance premiums can't be canceled. Instead, you have to refinance the loan.
funkymonkey1111
03-09-2017, 17:02
Recent FHA-insured loans require payment of mortgage insurance premiums for the life of the loan. FHA mortgage insurance premiums can't be canceled. Instead, you have to refinance the loan.
That's nuts
Also why a conventional was better than a fha etc for us.
What is your rate/term?
If you can get a lower rate with a re-fi, just put the cost of the appraisal towards that.
Did one re-fi with AmeriSave and one with these guys (local)...
http://www.cmgi.web-loans.com/
Didn't even need an appraisal on the last re-fi. Notary came to the house for about an hour and I was done. They credited some costs but still had to out of pocket pre-paids.
As Denver GP said, FHA requires the PMI for the life of the loan, no matter what. I was able to get out of mine in about two years, mostly because the market value of the house shot up so much. I refinanced into a conventional loan with Bellco (a lot of people have horror stories about Bellco, but I've had no issues). The value of the house went up a lot, but not enough to completely wipe out the PMI. Instead, since I was much closer to the 80/20 threshold, the amount I paid for my PMI went from something like $129 a month to only $31 a month. I made big payments on my mortgage to get it to the 80/20 threshold sooner, and once I got there, I let them know and they dropped it. I went into the refi with the express intent of getting rid of the PMI. I made sure that I could nix the PMI, and that there was no early payoff penalties. Like Kwando, I had to shell out $450ish for an appraisal and I wrapped that into my refi. Once I got to 80/20 I called Bellco and asked what they needed. They wanted a written letter or fax. I complied and they dropped the PMI completely. Good luck, it's a great feeling once it's gone!
funkymonkey1111
03-09-2017, 19:55
if you decide to refi (don't know your rates, terms, etc.) look at providentfunding.com i've refi'd twice with them, and they beat everyone else that i could find at the times.
I didn't shop around for my refi and ended up paying about $3,000 for closing costs that probably could have been avoided as a result. When I refi'd I did a streamline and with the closing costs ended up nearly back at where I started. I was able to completely get rid of the PMI in about six months though, so it was still worth it for me. All that to say that you should definitely shop around for the best deal.
Madeinhb
03-09-2017, 20:02
If you have a FHA loan - have to refinance to get rid of it.
If you have a conventional - need to be 2 years since the date the loan funded and at least 80% loan to value. If those cases - should be able to call bank and request it be removed if it doesn't get removed on its own.
I wasn't even six months into my conventional when I reached 80/20 and had my PMI removed. I'm sure there are differences between lenders though.
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