Ever tried to get Private Mortgage Insurance removed?

[SouthernGirl]

My town reappraised properties this year for tax purposes, and my appraisal pushed my house's value over the 20% equity mark required by most mortgage companies require before letting you drop PMI.

Are they going to try to stop me when I call them to ask that it be removed?

[newbreed]

They shouldn't. PMI is based on loan value here, well at least on our mortgage it is. Property value doesn't affect the %. It would be too easy to be fraudulant if it were any different.

[SouthernGirl]

you signed a weird loan newbreed. most cases if the equity in your home reaches 20% of the home's total value, your PMI can be dropped. The theory being that even if you default on your loan, the equity you will lose is compensation enough for the mortgage company. ie. they wont lose anything.

[SouthernGirl]

Cancellation of Private Mortgage Insurance: Federal Law May Save You Hundreds of Dollars Each Year
If you put less than 20 percent down on a home mortgage, lenders often require you to have Private Mortgage Insurance (PMI). PMI protects the lender if you default on the loan. The Homeowners Protection Act of 1998 - which became effective in 1999 - establishes rules for automatic termination and borrower cancellation of PMI on home mortgages. These protections apply to certain home mortgages signed on or after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. These protections do not apply to government-insured FHA or VA loans or to loans with lender-paid PMI.

For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.

One exception is if your loan is "high-risk." Another is if you have not been current on your payments within the year prior to the time for termination or cancellation. A third is if you have other liens on your property. For these loans, your PMI may continue. Ask your lender or mortgage servicer (a company that collects your payments) for more information about these requirements.

If you signed your mortgage before July 29, 1999, you can ask to have the PMI canceled once you exceed 20 percent equity in your home. But federal law does not require your lender or mortgage servicer to cancel the insurance.

On a $100,000 loan with 10 percent down ($10,000), PMI might cost you $40 a month. If you can cancel the PMI, you can save $480 a year and many thousands of dollars over the loan. Check your annual escrow account statement or call your lender to find out exactly how much PMI is costing you each year.

Additional provisions in the law

New borrowers covered by the law must be told - at closing and once a year - about PMI termination and cancellation.
Mortgage servicers must provide a telephone number for all their mortgage borrowers to call for information about termination and cancellation of PMI.
Even though the law's termination and cancellation rights do not cover loans that were signed before July 29, 1999, or loans with lender-paid PMI signed on any date, lenders or mortgage servicers must tell borrowers about the termination or cancellation rights they may otherwise have under those loans (such as rights established by the contract or state law).
Next Steps

Some states may have laws that apply to early termination or cancellation of PMI - even if you signed your mortgage before July 29, 1999. Call your state consumer protection agency for more information about your state's rules. Fannie Mae and Freddie Mac, which buy home mortgages from lenders, also may have guidelines affecting termination or cancellation of PMI on home mortgages signed before July 29, 1999. Check with your lender or mortgage servicer, or call Fannie Mae or Freddie Mac, for more information.

Contact your lender or mortgage servicer to learn whether you're paying PMI. If you are, ask how and when it can be terminated or canceled.

[sandman!]

Originally Posted by newbreed

They shouldn't. PMI is based on loan value here, well at least on our mortgage it is. Property value doesn't affect the %. It would be too easy to be fraudulant if it were any different.

its based on property value you can get your house re appraised by an appraiser recognized by your mortgage company and get it takes off of your house has gone up in value enought.

[SouthernGirl]

theyll get me on the loanvalue thing, those bastards.

[SouthernGirl]

based on original loan value appraisal. that's totally fucked because i could have taken a larger loan, but didn't and chose to pay a large downpayment. somehow i got ripped on this PMI deal and it's totally pissing me off

[newbreed]

Originally Posted by SouthernGirl

you signed a weird loan newbreed. most cases if the equity in your home reaches 20% of the home's total value, your PMI can be dropped. The theory being that even if you default on your loan, the equity you will lose is compensation enough for the mortgage company. ie. they wont lose anything.

That's funky, the last 3 mortgages I have dealt with were ALL based on the loan value, not property value, and they were 3 different finance companies. So although it may be "weird" to you, it's the way I have always seen it done here (in Ohio), and in the case of the house we just bought we put close to 20% down so PMI was not attached at all.

[SouthernGirl]

based on the original property value. what the fuck, i never saw an original property value. i paid 122,500 , the house was worth atleast 150,000 at the time. they never once said to me, " this is the amount we are putting down as the appraised value of your home for the purposes of this loan."

[SouthernGirl]

okay right now I really wish it was a weekday so i could find out what they put down as the appraised value of my home. im sure it benefitted them..

[newbreed]

Originally Posted by SouthernGirl

okay right now I really wish it was a weekday so i could find out what they put down as the appraised value of my home. im sure it benefitted them..

That should be in your loan package or if your county records are online search there for those numbers. Some counties in some states are not up to speed yet, but most have some kind of online DB you can access to find those numbers out.

[SouthernGirl]

my loan stuff is in a lockbox at the bank..hrm..i got fucked over with this deal.

[newbreed]

Originally Posted by SouthernGirl

okay right now I really wish it was a weekday so i could find out what they put down as the appraised value of my home. im sure it benefitted them..

If you are talking about what the bank had as an appraisal, it's usually very close to what the laon was, as they don't want you to have equity right off the bat (hence requiring the PMI). This loan we just got, wouldn't you know it, the house was appraised at around $200.00 less than the loan amount...lol The listing price and sale price were much higher, but they werent going to give us that much equity as soon as we closed.

Banks suck.

[SouthernGirl]

Originally Posted by newbreed

If you are talking about what the bank had as an appraisal, it's usually very close to what the laon was, as they don't want you to have equity right off the bat (hence requiring the PMI). This loan we just got, wouldn't you know it, the house was appraised at around $200.00 less than the loan amount...lol The listing price and sale price were much higher, but they werent going to give us that much equity as soon as we closed.

Banks suck.

yes indeed they do. i think this is what they pulled on me. fuck im so pissed that i pay them $50 a month that they dont deserve

[SouthernGirl]

if i didnt have such a good rate i would consider a refinance to remedy this