Author Topic: Removal of PMI  (Read 2602 times)

Zebra

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Removal of PMI
« on: April 04, 2015, 03:13:41 AM »
Has anyone requested early removal of PMI due to making extra mortgage payments? If so, how cooperative was the mortgage company/servicer?

I just refinanced my mortgage last month with a beginning LTV ratio of 87.21%. Under my normal amortization schedule, I won't hit 80% until 48 payments, and I won't hit 78% until 58 payments. But, at this point, I can afford to make extra payments sufficient to get LTV below 78% within 6-8 months. If I do so, is the mortgage company going to make it difficult for me to drop PMI (i.e., require a new appraisal), even though I'm less than a year into the new loan?

Also, how long will it take them to process the PMI removal--days, weeks, months?

ChaseJuggler

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Re: Removal of PMI
« Reply #1 on: April 04, 2015, 03:27:33 AM »
The home should have been appraised when you refinanced. So multiply that value by .8 and that's your magic number.

You can pay to have it appraised again, but you will have to hit 75% LTV instead. (So it would take substantial appreciation on the home value to make this worth it).

Frankies Girl

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Re: Removal of PMI
« Reply #2 on: April 04, 2015, 03:48:41 AM »
I tried, but they insisted on a inside/outside inspection (paid by me for ~$400) and that just pissed me off. We were something like 65% of the original loan amount when I requested the PMI removal.

Nice thing was while I was fuming and trying to talk myself into just doing the damned inspection, about a month later they offered a no cost refi that would remove the PMI in addition to lowering our interest rate. Turns out it was a make-good agreement due to a court settlement (which they didn't like to mention) for some shady loan offers they'd been making for several years, and I happened to benefit despite not being a part of the class action.

big_owl

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Re: Removal of PMI
« Reply #3 on: April 04, 2015, 05:30:40 AM »
When we refi'd a few years back we had a LTV of like 88% so were stuck with PMI.  We pay a ton extra every month so it wasn't long to get down to 80%.  As soon as we got to 80% we called the mortgage company and they removed it that month - it was really easy.  Our mortgage is with Quicken.  The LTV calculation was based on the original home valuation at the time of the refit.


Retired To Win

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Re: Removal of PMI
« Reply #4 on: April 04, 2015, 06:43:31 AM »
When we refi'd a few years back we had a LTV of like 88% so were stuck with PMI.  We pay a ton extra every month so it wasn't long to get down to 80%.  As soon as we got to 80% we called the mortgage company and they removed it that month - it was really easy.  Our mortgage is with Quicken.  The LTV calculation was based on the original home valuation at the time of the refit.

This is the same experience I had with another lender.  The process was actually automatic.  The lender removed the PMI charge before I had a chance to request its removal.

FuckRx

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Re: Removal of PMI
« Reply #5 on: April 04, 2015, 08:32:29 AM »

you should check with your lender or whoever currently holds the loan. sometimes even if you reach the LTV ratio they can keep the PMI for a certain length of time.

RWD

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Re: Removal of PMI
« Reply #6 on: April 04, 2015, 09:24:30 AM »
I believe if you have a 30-year FHA mortgage you will only be able to remove PMI by refinancing again because you refinanced after June 3, 2013.