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Questions tagged [pmi]

Questions about Private Mortgage Insurance

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PMI threshold when paying off part of the principal [duplicate]

I am in the process of getting rid of private mortgage insurance (PMI). I was planning on paying off my loan down to 80% loan to value and then get rid of the PMI. However, I was told by my lender ...
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1answer
158 views

PMI removal with LTOV <78% and decreased home value

I made a big payment to my loan to build equity and remove my PMI. Reading guidelines on consumerfinance.gov and it states - "If the value of your home has decreased below the original value, you ...
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1answer
352 views

Cancel PMI at 78% or at 75% if Fannie Mae

I just requested my bank to cancel PMI, since my balance reached 80%. Bank sent me note that I need appraisal and also my LTV should be 75% since my loan is less than 5 years old. Bank clarified that ...
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3answers
131 views

Canada's new mortgage laws

I need help understanding Canada's new mortgage laws? I have tried looking at the information online, and it keeps saying it will need a bigger downpayment, but to my understanding it just increases ...
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1answer
153 views

Can the PMI be dropped without refinancing based on home value increase?

I reached out to my lender today and he told me that: If I have 78% LTV of the original home appraisal, PMI is dropped automatically; however, If I reappraise the home and the value increased, making ...
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Do I need to remortgage to get rid of PMI with a new appraisal? [duplicate]

I asked this question about whether I need to re-apply for my mortgage in order to not have to pay private mortgage insurance anymore. All answers mentioned that this is not necessary. However, I'm ...
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1answer
203 views

Do I need to remortgage to get rid of PMI?

I called my lender last week. I am close to owning 20% of my home and want to get rid of PMI. They said I can only do it by remortgaging my house. Is that true? With the mortgage rates increasing, I ...
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1answer
172 views

Does the official county appraisal count for PMI calculation?

I contacted my county's tax office today and I was told that my home is appraised $7,000 more than it was a year ago. Great news, especially as I'm fighting to stop paying private mortgage insurance (...
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3answers
150 views

Confusion about PMI payment on FHA

I have been thinking to buy a house but I always thought that I would go for a conventional loan and put 20% down since my credit score is good and also I do not want to pay PMI for life. Now, a ...
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2answers
142 views

How does monthly PMI payments are calculated?

I understand that if one to take a mortgage without a 20% down payment, then the mortgage lender will require to pay Private Mortgage Insurance. From reading around I found out that the PMI is a set ...
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4answers
4k views

House Purchase: Pay student loans or put 20% down?

My fiance and I currently have the opportunity to buy our first house for 200k due to a large 19k bonus that will be coming to me from my employer. We're considering two uses for the additional money ...
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2answers
234 views

Advantage of dropping PMI at 79% LTV with an appraisal fee

The LTV on my 30-year mortgage recently decreased to 79%, and I called the lender to drop the PMI on my loan. The customer service representative to whom I spoke said that there would be $400-$500 fee ...
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2answers
255 views

Is eliminating debt smart when considering a home purchase? [duplicate]

I'm entering into the latter half of my twenties, and I'm now faced with a question I've seen a few times before on this site: should I pay off my student loans or use the money as a down payment for ...
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3answers
2k views

Lender refuses to terminate PMI despite my LTV being less than 78%

My lender, US Bank, is refusing to terminate my PMI even though I am now below the 78% loan to value ratio. We've been perfect customers and have never missed a payment. Their reasoning is that they ...
3
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1answer
147 views

Waiving PMI on initial conventional mortgage loan

I am about to close a mortgage loan for a HUD property which I had originally opted for a USDA Rural @ 3.25% for a sale price if $135,500 for 30 years. I just got the bank appraisal which states its ...
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2answers
120 views

LTV of sales price or appraisal cost

I want to purchase a home using a conventional 30 year loan @ 3.50% interest. I want to get out of paying the Private Mortgage Insurance. I understand I need to pay upfront more than 80% LTV. I ...
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3answers
209 views

How does a lender compute equity requirement for PMI?

I owe 280k on a house and asked my lender (CitiMortgage) about refinancing. My credit score is great (close to 850), and I'm a customer in good standing. CitiMortgage's appraisal came back at around ...
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1answer
98 views

Options to remove PMI payment from mortgage [duplicate]

When I bought my house last year, I had only about 8% of the purchase price for a down payment (though the bank's initial appraisal was for about $17,000 higher than the purchase price) but I figured ...
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4answers
19k views

After hitting 80% LTV, my mortgage lender refuses to remove PMI. Any recourse?

I recently refinanced my home. At the time based on the appraisal vs. amortization I found I would be stuck with PMI (private mortgage insurance) for about 9 months. I've paid extra on the mortgage ...
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2answers
126 views

Does FHA goes hand in hand with PMI ?

I am curious: Can a first time home buyer put a %20 downpayment (to escape the PMI) and still have that low HUD APR? Do HUD and PMI have to go hand in hand ? This is what I think: if I am a first ...
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1answer
2k views

Can FHA mortgage insurance premiums go up after a loan is issued?

Is the FHA monthly mortgage insurance payment determined at the time the loan is written? I have a friend who streamlined her FHA loan in about 2012 (original FHA loan 2007). Her MI annual payment ...
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4answers
266 views

Best refinance option

Edit 8/13 3:30pm: Thank you everyone for the helpful advice so far. The lender behind Options A & B contacted me and lobbied for himself, saying there is a $1000 credit towards closing which ...
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1answer
1k views

Is it to my advantage to refinance with an LPMI option (Lender-Paid Mortgage Insurance)?

My fiance and I bought a house in April 2013 using a FHA loan, 30-year fixed. We only had to put down 3.5% so of course a good bit of our monthly payment is PMI. I got a call today from the same ...
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1answer
254 views

Can I add PMI to my principal balance when I take out a mortgage?

I'm considering purchasing a house, but I'd like to put as close to 10% down as possible, so I still have money left after the down payment for closing costs and for renovations and repairs. ...
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3answers
1k views

How can I challenge or confirm a shady home appraisal?

I just built a new home and am finishing up the loan process. In the initial paperwork, the purchase price of the home was supposed to be 270k, but due to additions I wanted it ended up being around ...
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3answers
310 views

Loan-with-PMI vs other loan: which is best to pay down

I would like to understand whether it is better to make extra payments on a home loan that includes PMI (Private Mortgage Insurance) or a different (high interest) loan. Typically, when deciding ...
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1answer
3k views

PMI cancellation based on original mortgage amount

We bought a house in 2005, and since we did not put 20% down, we have been paying PMI. Since then, the value of our home (and neighborhood) has declined. Our principal balance is currently 77% of ...
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3answers
1k views

Is PMI rate set until 20% paid off

From various things I have read, it seems like PMI stays at the same rate, regardless of how much you owe. Is that right? That is, say I put down 10% and I get PMI. Will my PMI payments stay the ...
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1answer
332 views

Can I get a tax deduction for PMI?

My yearly income is less than $80000 but my joint income goes 150000+. If i file married filing separately, will i be able to claim PMI? I think there is income limit to claim it but i am not sure of ...
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2answers
2k views

First Time Home Buyers - Down Payment, PMI and Points

My wife and I are looking to buy our first home in the next couple months and wanted to get an idea of what we are looking at. Right now we have about 80k saved up and want to put 10% down on a home ...
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3answers
3k views

Why would refinancing my mortgage increase my PMI, even though rates are lower?

I'm currently stuck in a 5.5% loan on balance 167.5k. PMI is roughly $75/mo. I am trying to refinance, but my lender tells me that even going down to ~4% rates, it wouldn't be worth it because my PMI ...
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2answers
117 views

FHA streamline refi

I am looking into doing a streamline refi on my 211,000 FHA loan with interest rate of 5.5%, 30 yr fixed. I've had this loan for 2 years. I can get a 4.25% rate, 30 yr fixed. My concern is that my MIP ...
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4answers
2k views

Lower rate with PMI or higher rate?

I'm currently in the process of looking for home to buy, and one of the options is one costing 460K, which I plan to pay with 15% down and the rest (391K) financed. Since it's less than 20% down, the ...
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2answers
2k views

I have a mortgage with PMI, what happens to PMI when I get to the 'safe' LTV ratio?

I have a mortgage with PMI, what happens to PMI when I get to the 'safe' LTV ratio? Does my payment stay the same and more money goes to paying off interest or principal? Does my payment drop?
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2answers
1k views

Primary Residence to Investment Property - Changing PMI Terms

When I purchased my property, it was my primary residence. Two years later, I moved out and began renting this property out. I am now trying to refinance the mortgage on this property, but I am not ...
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4answers
871 views

Our home equity has increased. Can we get rid of PMI without an appraisal?

We have Private Mortgage Insurance on our house because we didn't put 20% down when we bought it. We've recently paid some extra money on the mortgage, and we now have > 22% equity. We've contacted ...
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2answers
1k views

Is it possible to eliminate PMI (Personal/Private Mortgage Insurance) on a mortgage before reaching 20% down on principal?

I am a relatively new home owner, having purchased my first home in October 2009. Overall, I feel I got an excellent deal on the loan, which was 5% no-cost, no points, and 12% down. I had to take on ...
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2answers
5k views

What does PMI mean?

I've seen the term PMI used a couple of times on this site and don't know what it is. What is it?