I have to pay mortgage insurance for 3 years. When can I stop?

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I asked my lender for PMI ($ 330 per month!) Traps, but they refuse because I too late on some payments. Is it not make sense if the drop PMI, I would stay in a better position on the loan so far as it would cost $ 330 less per month? I can not refinance because no one else to make a loan for me, because these late payments. I would never have been the end of my payments were $ 330 cheaper. And I never took the loan if the fee of $ 330 a month would have communicated to me before closing. Suggestions?

7 Comments
  1. Reply
    Mortgage Broker
    May 4, 2011 at 1:19 am

    MI is required as long as your mortgage is over 80% of your homes’ current value. Once you get below 80%, contact your lender and they will remove it.

  2. Reply
    maplewoodjoe
    May 4, 2011 at 1:53 am

    PMI inssurance is required if the down payment is less than 20% of the purchase cost. If your equity in your home is @ 20% or greater, they have no right to charge this fee. An attorney may write a letter on your behalf.
    In some areas, home values are dropping, so even if you now have 20% value of the PURCHASE cost, the MARKET value my be different. Often times, you have to get an appraisal of your home to verify to the lender that you have exceeded the 20%. equity. Good Luck

  3. Reply
    amw
    May 4, 2011 at 2:46 am

    Your PMI (mortgage insurance) will only automatically terminate after you’ve reached 22% equity in your home, EXCEPT when you’ve had late payments within the last year.

  4. Reply
    hollywoodmelody
    May 4, 2011 at 3:29 am

    Someone should have disclosed your PMI amount when you signed your loan documents. It doesn’t make sense because you signed your documents knowing full well what your payments would be. True, things do happen in life where we can get behind on payments but don’t try to blame the PMI as the problem.

    Ask your lender if they brokered the loan to someone else. I’m sure they did, so you will be out of luck with any help from them.

    Right now I would work on paying my mortgage on time so down the road you won’t have trouble with liens or messing up your credit further.

  5. Reply
    matsonb
    May 4, 2011 at 3:39 am

    PMI is insurance to protect lenders when a borrower puts less than 20% down. PMI is the vehicle that allowed you to buy your home. I’m sure you can sacrifice something else in your life that will ensure you make your full payments on time. Why would the lender drop the insurance that covers them, while you are proving to the lender that you are a risk? Make your payments on time, which will also bring your credit scores up. After you’ve made 6 months on time, go back to your lender and request it be dropped OR refinance with another company. Prove yourself, and then you will have options…

  6. Reply
    Dzo
    May 4, 2011 at 4:24 am

    Hi,

    The best option for you is going for refinancing with another lender. There are several agencies which may keen on helping you. You can visit http://www.fundsleader.info and get useful info related to refinancing and mortgage. Good luck to you.

  7. Reply
    achievablemortgages
    May 4, 2011 at 5:02 am

    Check the initial documents you signed regarding the pmi. Contrary to what many people have stated here, 80% LTV, or 20% equity usually only releases the PMI upon purchase with that money down. Many lenders are requiring 25%-35% for the release of the pmi now. You’ll need to check that paperwork to see at what ltv your PMI is released.

    Once you’ve done this, you can contact the lender to have them perform an AVM (automated valuation model). This is an automated appraisal done by the lender. Many times this is more conservative than one that you could get yourself, but this is also why the lenders use it. Most lenders will no longer accept an appraisal done by your appraiser to release pmi, because borrowers used to get an appraiser to overinflate the value.

    If the AVM comes in high enough to release your pmi, they will have to do it. If your property has appreciated in this market enough to release the pmi, you’ll be lucky, although I do wish you the best of luck.

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