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Has anyone successfully gotten rid of PMI? Bank/mortgage people pls come in!
We were with PNC but they sold our loan to someone else. PNC is still "servicing" the loan for us though. We went through all the steps of trying to get rid of our PMI. We paid down the mortgage to get the ratio where it needed to be and then started the process. We had someone come and appraise the house. The house is new construction but I guess that doesn't matter because we've been here 6 months and the house was appraised for 15k less than what we paid for it. In 6 months!! (kind of gives new meaning to sh*tty housing market huh?)
So PNC told us "too bad, your PMI will not terminate until 2018". (not sure if it was the decision of PNC or the company who owns the loan but the letter came from PNC who "services" us). So we are out the money it cost to get the appraisal for nothing. Now Ed wants to re-fi since rates are lower now than when we locked in. (this is our dream house, our forever house and we are not moving again so re-fi is not an entirely bad idea). We will still have PMI until 2018 but since the rate will be lower perhaps we could still save money that way?. We could save and make another chunk of a payment again later on to try and reduce PMI but then we run the risk of the house being worth even less. Is refi our only option? Any advice is appreciated!!!
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Re: Has anyone successfully gotten rid of PMI? Bank/mortgage people pls come in!
based on the appraisal, do you have enough equity to refi?
i know jack about pmi. i can tell you we don't ahve it anymore and thats about it.
what you need to find out about refinancing is because you said your house appraised for 15k lower will that affect your refi?
we got a PHENONENAL rate. but our house didn't appraise for what we needed it to so we had to pay the difference in order to refi. for some people that seems dumb. but our broker was offering us an AMAZING deal with basically no closing costs and we are saving a huge chunk of cash each month and long term it will help us
but if you can't make up that difference than it might not make sense
When I bought my first house, I only had 10% to put down, so, in theory, should have paid PMI. But, to avoid that, I took out one mortgage for 80% and then a second mortgage for 10%, at a much higher rate, and then made double payments on that mortgage to pay it off quickly.
If you still qualify for a refi, based on your lower appraised value, maybe something like this would help (if they are even still doing loans like this)?
Not a newbie, but, had to create a new account - formerly LBR_NJ
My Blog - "Helping Make Sense"
They don't do these piggyback loans anymore.
Is what you owe on your mortgage more or less than what your house is worth now? If it is more, you can't re-fi.
No! This is what caused so much turmoil in the market. They don't allow this any more.
Why? My salary clearly showed that I could pay both of these, it was just the initial 20% cash that I didn't have. I thought the problem was that they were extending too much credit, more than people's salaries could, in reality, afford.
But, if I'm wrong, then I rescind my post! I don't follow the mortgage industry at all - I just know how I bought my house and paid off the 10% mortgage in a year (and then refinanced the bigger mortgage).
Not a newbie, but, had to create a new account - formerly LBR_NJ
My Blog - "Helping Make Sense"
unfortunately lisa, you were probably one of the very few who were offered this financing arrangement that could actually afford it...more often than not, it was made to look on paper that people could afford it bc the primary mortgage was a 5 yr floating arm, so the inital payments were very low, but when the arm reset, they couldn't afford the payments, and weren't smart enough to refi like you...
Right, I forgot about those floating ARMs. Mine were actually both 30 year fixed mortgages, one at 6.5% and the small one at 9.5%. But, this was also 11 years ago!
Not a newbie, but, had to create a new account - formerly LBR_NJ
My Blog - "Helping Make Sense"
If you refinance, the only way to get rid of PMI is if your house appraises for enough to show that you're at that 20%.
When we bought our house, we were about $10k shy of that 20% down payment. We are currently refinancing and got a great appraisal with Wells Fargo - house actually appraised for $10k more than it appraised for when we bought it in 2008. I think the appraiser just liked me.
Anyway, once our refi is complete, hopefully in a few more weeks, our PMI will be GONE!
It wasn't the80/10/10 mortgage deals that screwed things up, it was the bam,s that were clearly lending more ths people could afford. Seven years ago we were offered a mortgage for more than twice what we actually took out. N f'n way could we afford that, but they were offering it to us. And many people out there were stupid enough to take loans like that since they were ridiculously short-sighted. Lending parameters were too lenient and now everyone is paying the price.
exactly- and a lot of the mortgages people took out and couldn't afford the payments when they reset were interest only loans, not traditional ARMs, in a traditional ARM your rate can only reset a certain amount and there is a cap- It was the interest only loans and taking out loans that were bigger then income could support that did the housing market in-
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