Real Estate Advice

[FRPLG]

Originally Posted by jsarno

Sorry to use his thread for my own question, but I talked about PMI insurance earlier and realized that my new house is under 80% LTV. I owe around 75k and the house is now worth roughly 110K (I know it probably makes you guys sick to know that housing costs are so low out here, but remember this place sucks)...I'm still paying PMI. How do I get rid of this? I have yet to do this in my homeowner experiences. Any advice?

ps- I have a very good friend that does appraisals if this helps.

You'll need to refi and depending on your current rate it may not be worth it.

[jsarno]

Originally Posted by FRPLG

You'll need to refi and depending on your current rate it may not be worth it.

There is no other way out of it? So I'll be throwing that money away forever?

[724Skinsfan]

Originally Posted by FRPLG

You'll need to refi and depending on your current rate it may not be worth it.

You may be right, but I was under the impression that PMI is cancelled after reaching 22% of LTV. If that's not the case, then I thought you could request in writing to have PMI cancelled once sufficient proof (ie, appraisal) is provided. I had never heard of having to refinance, but then again it's not something I keep up to date on.

[FRPLG]

Originally Posted by 724Skinsfan

You may be right, but I was under the impression that PMI is cancelled after reaching 22% of LTV. If that's not the case, then I thought you could request in writing to have PMI cancelled once sufficient proof (ie, appraisal) is provided. I had never heard of having to refinance, but then again it's not something I keep up to date on.

Partially correct. I assumed you meant based on an increased market appraisal.

The HPA of 98 mandates that PMI is cancelled immediately upon reaching 22% equity based on original purchase price.

After some research I realized I was wrong. With the super low rates most people have been refinancing to create higher equity, cancel PMI and reduce rates and payments. Now with rates leveling out it is probably not in your best interest to refi so you can request PMI be cancelled once you reach 20%equity or if you provide sufficient evidence that you now have 20% equity due to market value increase. I have never heard of someone doing this but I don't think it is terribly uncommon. Just lately it has been because of market conditions. Usually there will be some type of wait time involved before PMI can be cancelled. I guess 2 years is the norm. That is wait time from loan origination.