Home Buying in 92394>Question Details

Asia Wallace, Home Buyer in 90019

HAS ANYONE PERSONALLY KNOWN OF PMI BEING CANCELED/DELETED OFF A LOAN? OR SHOULD I JUST PUT UP THE 20% DOWN PAYMENT. EITHER WAY SUCKS. HELP

Asked by Asia Wallace, 90019 Tue May 18, 2010

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7
Hi Asia,

I would recommend that you come in with the 20% down up front if you have the money. PMI Insurance is a waste of money and the bank will not remove the PMI insurance once you have reached the proper Loan to Value limit unless you call the bank directly and ask them to remove the PMI. If you forget, the bank will continue to charge you for the service until you call them directly. Lastly, while you may find things tight financially in the beginning, in the long term you will be in a much better position financially with more security and peace of mind. Best of luck!

Matt
1 vote Thank Flag Link Wed May 19, 2010
PMI can be removed once an owner has at least 20% equity in the property.
1 vote Thank Flag Link Tue May 18, 2010
Asia;

When you obtain your loan, your lender will provide you criteria, in writing that must be met in order to terminate the mortgage insurance.

I personally terminated the mortgage insurance on my home loan.

Bo
0 votes Thank Flag Link Thu Feb 7, 2013
You can have it removed when you have 20% LTV with conventional financing and if it an FHA loan then you will have to have 22% LTV with minimum 5 years payments. The law is soon changing to where you have to have mortgage insurance for the whole term of an FHA loan. I will be dong very low cost refinances for my clients in those situations.

You may qualify with a minimum 620 fico score for only 5% down with conventional financing with NO Mortgage insurance (Lender paid MI). It only takes a few dozen questions to qualify in minutes for the program to fit your needs the best financially. Here are some links to study and consider.

http://www.under640ficoscoreloans.com/Pages/Conventional.aspx

http://www.under640ficoscoreloans.com/Pages/CHDAPLoans.aspx

http://www.under640ficoscoreloans.com/Pages/HalfPercentDown.aspx

http://www.under640ficoscoreloans.com/Pages/ContactSheryl.aspx
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0 votes Thank Flag Link Thu Feb 7, 2013
If 20% down will leave you tight financially, you might want to get PMI for a few years until you can comfortably make the rest of your down payment. The peace of mind that a few thousand dollars in the bank offers is priceless! The monthly PMI payment should be a nagging reminder to save the remainder of your down payment.

With today's low interest rates, you may wish to opt for a 15 or 20 year mortgage. You will get a lower interest rate, lower PMI payment, and your equity will build much faster. A rule of thumb to remember is that 15 years into a 30 year mortgage you've only paid 1/3 of the original balance.
0 votes Thank Flag Link Mon Nov 26, 2012
Mr. Bartlett answered the question perfectly. Hope that helps.

Paul Zaharia
Paul@BlvdBroker.com
0 votes Thank Flag Link Mon Nov 26, 2012
Asia;

PMI can usually be cancelled according to terms specified in your loan paperwork. You can contact your lender for details.

I have seen homeowners cancel their PMI on a regular basis, and I have been able to cancel it personally. Cancellation of PMI is more frequently seen in an upward market.

If you can afford to put down 20%, I would highly recommend it, but do not deplete your savings, emergency fund or retirement to avoid PMI.
0 votes Thank Flag Link Tue Jul 10, 2012
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