Home Buying in 95403>Question Details

Richard, Home Buyer in 95403

I had a 90% loan. Value of home has increased since then by 28% thus my loan to value s about 72% now. Can I drop PMI?

Asked by Richard, 95403 Sat Aug 3, 2013

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4
Hi Richard,

Every loan has different rules, usually FHA is the most stringent, but normally if you have at least 22% equity you should be able to drop the PMI. The newer FHA loans require PMI for the life of the loan, so you'd need to refi in that case. Refi'ing would only make sense if 1) you couldn't drop the PMI any other way, or 2) the current interest rate is significantly better than the one you have.

You can ask your agent to help you out with a market analysis so you have something in hand to show the lender. With loans, you want to be pretty conservative and know you are well within what you need to get the 22%, or whatever your lender requires.

Good luck!
Sheila
3 votes Thank Flag Link Tue Aug 6, 2013
It would depend on when your PMI was initiated. Your other option would be to refinance your current loan to drop your PMI all together. Please feel free to contact me with any other questions.
0 votes Thank Flag Link Mon Mar 9, 2015
I think Sheila has given the most concise and correct answer here. There is really nothing I would add or augment to her statement other than to call me at Wells Fargo Home Mortgage for a free analysis of
your current situation.

My Website: http://www.wfhm/aubrey-rumberger

Best of Luck,

Aubrey Matthew Rumberger
Home Mortgage Consultant
NMLS #1004246
Wells Fargo Home Mortgage
600 Bicentennial Way, Suite 200
Santa Rosa, CA 95403 (707) 521-4071
0 votes Thank Flag Link Fri Aug 9, 2013
We can certainly help you out. You can check us out at http://www.TheMortgageOutlet.com and give us a call. One of our loan officers will look at your situation and present you with some options.
0 votes Thank Flag Link Mon Aug 5, 2013
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