I purchased a home with 10% down and purchased PMI up front, in full. Now I want to refinance but am told

Asked by Zamboni, Rowley, MA Thu Jul 23, 2009

I'm not eligible for either the Fannie Mae or Freddie Mac programs because my PMI has been put into a pooled or SMC program. What are these products and how can the bank do that without notifying me in advance? My closing statement indicates a company name and I thought we were purchaing a quality product.

Help the community by answering this question:

+ web reference
Web reference:


Christopher Lawton’s answer
Christopher…, Agent, Woburn, MA
Thu Jul 23, 2009
Did you pay the PMI out of pocket or did you finaance it into the loan? Most FHA loans without putting 20% down charge you PMI with the monthly payment depending on the size of the loan the PMI amount changes, these days they allow for MIP which is up front PMI paid in advance this allows the payment not to be as high since they have the bulk of the money up front, I would chekc elsewhere as the bank most likely sold the loan and if you refi now they get wacked with a EPO charge which is substancial, please email my contact sromano@mortgagenetwork.com you will answer your questions a little better.
1 vote
Markf, Home Buyer, Fort Lauderdale, FL
Tue Mar 30, 2010
Ask of you are getting refundable or non-refundable PMI. It will affect refinancing or paying off your loan while you have PMI insurance. If you have non-refundable, make sure you close your loan before the month end or you will be charged an entire month of PMI insurance.


If you payoff your loan by the fifth of the month instead by previous month end. Then you will pay your entire month of PMI insurance.

I hope this helps someone out there. The PMI company will not prorate my premium it cost me over $200 for nothing!!!!!
0 votes
Janet Sterman, Agent, Newton, MA
Thu Jul 23, 2009
Call the PMI company and check it out. If you paid a single upfront premium it is probably non-refundable, but the PMI insurer will be able to tell you what your options are.
0 votes
Search Advice
Ask our community a question
Financing in Rowley Zip Codes

Email me when…

Learn more