How To Get Rid of PMI - (Private Mortgage Insurance)

[@jo-annmacneill6454]

My son and I bought a house in 2020 the interest rate was less then 3% well a year later I wanted to buy my own place and he wanted to have the house in his name the new rate was double and it cost him about $10K. my new rate is 4.99% I was lucky to get that last May 2022. Not sure if the rates will ever be under 3 percent wish there was a way for me to just transfer it to him instead of refinancing.. the Banks and Lawyer got rich....for sure

[@MovingtoBoston]

$10k is a lot in closing costs. It's tough as most of these banks don't own the loans on our house. They are just the servicers. That's why they can't just take someone's name off of it. It's not old school community banking anymore. It is Wall Street owned mortgages in bundles of thousands.

[@jo-annmacneill6454]

refinancing is not free. It can cost you 10 grand. You have to weigh the pros and cons and see if it's worth it.

[@MovingtoBoston]

100% correct. A lot of lenders try to make it sound like it’s free by wrapping the closing costs into the note.

[@bellacannav]

I bought my house in 2021 threw a FHA loan. I've put 20,000 into it. Redfin and zillow value the house 730,000. My lender is telling me i don't qualify to knock off my pmi. Ive spent countless hours on the phone with HUD and my mortgage lender for them to tell me i don't qualify. What should I do? Thanks in advance

[@MovingtoBoston]

Some lenders are like that and won’t do it. The only other thing you can do is refi which most likely wouldn’t make any sense based off the timeline as to when you bought the house.

[@tatokainjones9029]

I have a question. We locked in the price for a under construction house for $260,479 at the beginning of 2020. After several delays we are about to close we have 5% down, so we are going to have to pay PMI. But my house is worth significantly more now. I’m basing this on the fact there is another house in the same neighborhood the exact same floor plan same materials that is being sold by the same company that is going for $347,646 do you think we can get an BPO or appraisal and get rid of of the BPI before we even sign the loan? Or do we have to wait until after?

[@MovingtoBoston]

No. The bank uses the lower of the two (purchase price/appraisal) to go off the value. Once you close, talk to your bank about the process, otherwise you will have to refinance.

[@ervinyoungblood5143]

I bought a house in 2017 for 300k, now worth 500k. My mortgage company says that my PMI won't ever come off. FHA Freedom Mortgage loan

[@MovingtoBoston]

Some loans will only allow PMI to drop off when you have paid down to 78% of the original value. Some you can order a new appraisal and some… You can’t do anything. It sounds like you would need to refinance in order to get rid of the PMI. You should reach out to Jason at 617-413-5038.

[@scottdavis9579]

My dude, I'm literally going thru the same thing with Freedom Morgage. They want me to refinance and raise my APR up from 2.875% to 5.255%. Bought my house for $380k and now it's worth $520k. They want you to keep your PMI.

[@ervinyoungblood5143]

@@scottdavis9579 SMH, I planned to refinance with a conventional, but now interest rates are through the roof!! 🤷🏿‍♂️ I guess I'll hold tight for now, sheesh

[@ampedupsparky9456]

Buying a house in NC. Looking at putting down 15%, paying 6 months with pmi and then put another big payment down to cancel pmi. Would I have to refinance if I do it this way? 15% down interest rate is lower than 20% down at closing is why I'm thinking this route.

[@MovingtoBoston]

The interest rates for a 15% down program is less then a 20%? Interesting. Check to see what the loan program is with your mortgage broker is. You may also want to ask if there is a pre-payment penalty and if you are able to recast the mortgage when you put the second chunk down.

[@AdrianRodriguez-sh4lp]

Hello, if I received a down payment assistance program, do I need to pay that amount in order to get rid of the pmi. My mortgage loan amount has reached less than 80%. Thank you

[@MovingtoBoston]

It really depends on the MOrtgage Insurance company and who you are serviced with. Did Each bank and services can be different. You want to call your services and have them pull up your requirements for your specific loan. The simple answer should be as long as you are below 80% you can eliminate it… But there is a gray area.

[@joesaiyang]

I live in SoCal, and purchased a house last year. This year the value of the house increased by 22%. I called our lender, but they said that the PMI is required for 2 years under FannieMae. Is that correct?

[@MovingtoBoston]

I believe so but am checking with my lender to confirm. What is your rate? Rates right now just dipped. It might be a good time to refi.

[@japanesecinema6736]

Question. Bought my house in 2018 for $105,000. We have $93,000 left on the loan. So three years in the house is estimated to be worth $153,000 - $160,000. Should I call the bank and have the house re-appraised to elimonate pmi and should I refinance as well. We are paying 4.25% interest on 30 year conventional.

[@MovingtoBoston]

Sounds like a refinance could be a real smart move paying a 4.25% interest rate. I can’t really give an estimate of what your house is worth and if the $153k is correct as each market is local. I would recommend reaching out to your a Mortgage Banker and learn more about a refinance.

[@japanesecinema6736]

@@MovingtoBoston im basing the estimate on red fin and zillow zestimate. I heard redfin is more accurate at $156,000. The market is crazy right now. Should i get my property re-appraised?

[@MovingtoBoston]

@@japanesecinema6736 - A new appraisal would be part of a refinance. I personally wouldn’t waste money on an independent one because you would just have to pay again with the refinance.

[@fornos123]

Yeah you appraise the house and now your taxes go up because the house is now worth more. Come on

[@MovingtoBoston]

Appraisals and assessments are not one and the same. As a homeowner, you own the appraisal. It is not shared with your local government. Having an appraisal done and it coming in higher will not affect your property taxes. Very common misconception, appraisal vs. assessment.

[@warrenwarren4339]

I pay 20% of my mortgage but wellsforgo refuses to remove my pmi, what can I do?

[@MovingtoBoston]

You should look at your original loan docs. It may require 78% LTV before it rolls off. Otherwise you may want to look at refinancing.

[@adrianavalle7879]

@warren Wells Fargo did the same to me. What did you ended up doing?

[@riacalderon2437]

HI, I have a conventional loan closing next month. My initial appraisal comps is just the same with appraisal but cost coach appraisal is 8% higher than purchase price. If I put 12% down, would that mean I have an 80%LTV and can get rid of pmi upfront prior closing? Or should I have atleast 6mos of payment history and have another appraisal to determine whether or not I can get rid of pmi?

[@riacalderon2437]

House price increase is crazy in my area. I am thinking if I can take that in my advantage

[@MovingtoBoston]

This is for a purchase? The bank will take the lower of the two. Either appraisal or purchase price. You would need to refinance or pay for a new appraisal down the road.

[@MovingtoBoston]

With this fast appreciation, many home owners will be able to quickly refinance and get out of their PMI. Amazing time to be buying a home!

[@riacalderon2437]

@@MovingtoBoston The thing is I am not planning to refinance it. I got a 15yr fixed loan with a 2.5 interest rate. I dont think I can get any interest rate lower than that

[@MovingtoBoston]

@@riacalderon2437 - Then call the bank to see if you can eliminate PMI by paying for a new appraisal.