How can i lower my PMI or get away from paying PMI?

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I bought a house in Las Vegas in October of 2006. I did a 7Yr/ARM, and only put down 6% down payment for $ 251,000, and i’m now paying $ 400 a month on PMI making my mortgage $ 1,800 a month. I’m currently not living in the home but am thinking about renting it out. What can i do to lower it or get out of paying that. Would refinancing to an 80/20 loan do me any good? What can i do to better my situation?

5 Comments
  1. Reply
    Michel D
    April 30, 2011 at 12:42 am

    PMI Is now tax deductable. Keep the PMI it will eventually fall off. A second mortgage will not.

  2. Reply
    David P
    April 30, 2011 at 12:54 am

    pmi is not tax detuctable unless you went with a TAMI , wich is TAX ADVANTAGE MORTGAGE INSURANCE, it adds a hit to the rate, so you can write it off at years end.
    to answer your question. i can put you in a new mortgage, which goes to 100% LTV with no mortgage insurance(this is NOT an 80/20, it is ONE LOAN with ONE PAYMENT), this is called a niche loan, because that is the lenders specialty. they do “no MI ” loans. i would be delighted to help you. my costs are low, my rates are good, and service is honest and impeccable. no app fees, no consultation fees, no pre-qual fees. i will put together a great loan for you, that suits your needs and wants and goals, and if you like it great, if not, then thats okay, because i dont use TRAP TACTICS like other brokers. call me anytime on my cell phone, 203-410-4427, or office 203-729-8900 x-111, 9-5 EST, mon – fri. ask for david powell. i look forward to speaking with you, i want you as a client, lets get started.
    dpowell@oakwoodmoney.com

  3. Reply
    mortgage help
    April 30, 2011 at 1:53 am

    A big variable for a lender deciding what they can do for you will be the appraisal. Have an experienced Loan Officer contact one of their appraisers so they can pull comps for you. Also give them a full application and credit report so an accurate analysis will be given to you.

  4. Reply
    stevelarsondirect
    April 30, 2011 at 1:59 am

    You need to lower your principal balance to 80% loan to value to avoid PMI. There are other single loans with built in PMI but either way you are paying a higher cost. An 80/20 is the best option to lower PMI. Depending upon your situation and loan sizes, it may or may not make sense to pay the cost of the refi. If you wish to look into this with some accurate figures, please feel free to contact me.

  5. Reply
    W. E
    April 30, 2011 at 2:16 am

    For Tax purposed you need Publication 530 – Main Contents

    http://www.irs.gov/publications/p530/ar02.html#d0e1090

    Just copy and paste to go to the web site. I did receive a e-mail and am looking for it, that stated PMI is now tax deductable….It is a new law, before just mortgage interest on your loan was tax deductable.

    If you decide to refinance, you can include the MI (PMI) in the rate, and it would be lower. say you have a 6.5 now – than take a 7 rate, and it is still tax deducatable For instance. 251,000 at a 7 rate is 1669.91 saving you 130.00 a month. You may even get a lower rate ( if you qualify for a VA loan, VA loans do not have MI at all.)

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