Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

[ezbtr]

At 3.5% fixed 30 year, any other way around this?? Thanks again guys

 

[bruceb58]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

At 3.5% fixed 30 year, any other way around this?? Thanks again guys

What's your LTV? Value is likely fixed at the value of the home when you took the loan out. When did you get the loan? What percent did you put down?

You should speak to a mortgage broker. They will know the ins and outs of this.

 

[bajaunderground]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

To eliminate MIP (Mortgage Insurance Premium) you either have to wait until your home reaches the threshold set by FHA or Re-finance with a Conventional Loan. If the Loan-to-Value is not in excess of 75% (sometimes 80%) then you can refinance without PMI (Private Mortgage Insurance). FHA got stiff with MIP about 5 years ago and changed the "automatic" drop dates....rates right now on 15-20 year are hovering around 3.75%...30 year 4.0%. As Bruceb said, contact a LO and see what's available?

~Brett

 

[kenmyfam]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

Good question for a mortgage broker not a boating forum Good luck with it though.

 

[ezbtr]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

What's your LTV? Value is likely fixed at the value of the home when you took the loan out. When did you get the loan? What percent did you put down?

You should speak to a mortgage broker. They will know the ins and outs of this.

sold new for 504K 9 yrs ago, got it for 210K 1.5 yrs ago worth 284K now

 

[ezbtr]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

Good question for a mortgage broker not a boating forum Good luck with it though.

nope!!! we have the absolute most diverse guys on the planet, HERE!! and that I trust....

 

[bruceb58]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

What was the value when you got the loan? That is what they go by on FHA.

 

[redneck joe]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

i'm kinda of in the same position, but we have done some improvements ($8k of fencing, new roof, covered patio [big one] and a pool).

Would getting a new appraisal to the bank work?

 

[bajaunderground]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

i'm kinda of in the same position, but we have done some improvements ($8k of fencing, new roof, covered patio [big one] and a pool).

Would getting a new appraisal to the bank work?

Under new federal guidelines, any appraisal that is to be used for securing a loan needs to be ordered by the lending institution. If ez orders and pays for an appraisal, it would have to be re-ordered by bank/credit union. I would hate too see him have to pay twice.
If you are wanting a real good idea of market value, call your local Realtor and ask for a Comparative Market Analysis. While it's not used for appraisal purposes, it can be very accurate and ammunition against actual appraisal, in the event said appraisal comes in less than expected? Agents will typically provide one at no cost...I know it's how we do it here in Colorado Springs.

I've personally challenged 2 appraisals for friends re-financing over the years and won...one buddy bought me a bottle of Crown Reserve as it made the difference of $200/month!

As stated, call a Loan Officer at a Credit Union and chew the fat over what options might be available for you to eliminate your MIP. Just asking questions is free and you might be surprised at the answer?! Most LO's and Realtor's love helping people!

While I am a professional Realtor (I've also been a loan officer consecutively), there's nothing I can provide, other than advice that will help!

Good Luck, keep us posted!

 

[redneck joe]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

I wouldn't be looking for a new loan, just getting an appraisal and taking to my current lender to get rid of my $70/mth PMI. I'll call them.

 

[southkogs]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

What was the value when you got the loan? That is what they go by on FHA.

I think Bruce is right, doesn't really matter what it's worth. It's principle vs. the loan value ...

... because I'm a mortgage expert.

 

[avenger79]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

I wouldn't be looking for a new loan, just getting an appraisal and taking to my current lender to get rid of my $70/mth PMI. I'll call them.

when I got my first home loan was told that improvements would only negate PMI if they were 40% of value rather than 20%.

 

[avenger79]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

At 3.5% fixed 30 year, any other way around this?? Thanks again guys

just refi'd mine last year, they didn't even do an appraisal. no PMI because of new rules with dropping home values or something.

 

[bruceb58]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

FHA rules were all changed. It has completely different rules now. In the old days, as your houses value went up, you could get rid of the MIP but now, it's once your principal balance reaches the threshold vs the original appraisal done for the house at loan time. Your home value could triple and it doesn't matter.

 

[gm280]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

The part I seriously hate about PMI is the fact that you pay the premiums but get zero benefits from it. That some how should be against the law. My first house was an FHA repossessed home that we had to make a down payment bid on and the winner of that home was the folks that bided the highest down payment. But not having a great job at that time or having anything else to our names being newly married, we had to pay PMI. Our second home we bought the land and the plans and hired a contractor to build it. We made more then 20% down payment for that home and didn't pay any PMI OR escrow account either. So we control the money throughout the year paying our own insurance and taxes. A lot of money saved for us...

 

[bruceb58]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

The part I seriously hate about PMI is the fact that you pay the premiums but get zero benefits from it.

That's pretty much true of any insurance. If there wasn't PMI, you wouldn't be able to get a loan with less than 20% down.

 

[bruceb58]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

sold new for 504K 9 yrs ago, got it for 210K 1.5 yrs ago worth 284K now

Before or after June 3, 2013?
You need to read this:
FHA Requirements: Mortgage Insurance?
You were probably told all of this in your loan documents that you signed. Go back and review them. It will spell out the MIP rules.
Hopefully, you got your loan before that date of June 3 , 2013. If not, you should refi if your current LTV is better than 80%.

Someone told you 3 years to go because 5 years was the earliest you can get rid of MIP under the old rules. Of course you also have to meet the 78% LTV.

Backing out the numbers, if you need 34K to get to 78% LTV means your principal is probably around 197K right? If this is the case, your current LTV is around 70% assuming 284K current value. Are there some good comps to support that value? I don't think that helps you with the FHA but it does mean you can refi into a conventional loan with no PMI. I would seriously consider doing that even if the interest is higher. 2 reasons...MIP is not deductible as far as I know and your total payment may be actually lower, especially after taxes.

I have a good mortgage broker where you can get no cost loans if you are interested. PM me if you want the name/number. I have done 3 loans with him. He is located in San Diego and everything is done remotely.

 

[ezbtr]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

Before or after June 3, 2013?
You need to read this:
FHA Requirements: Mortgage Insurance?
You were probably told all of this in your loan documents that you signed. Go back and review them. It will spell out the MIP rules.
Hopefully, you got your loan before that date of June 3 , 2013. If not, you should refi if your current LTV is better than 80%.

Someone told you 3 years to go because 5 years was the earliest you can get rid of MIP under the old rules. Of course you also have to meet the 78% LTV.

Backing out the numbers, if you need 34K to get to 78% LTV means your principal is probably around 197K right? If this is the case, your current LTV is around 70% assuming 284K current value. Are there some good comps to support that value? I don't think that helps you with the FHA but it does mean you can refi into a conventional loan with no PMI. I would seriously consider doing that even if the interest is higher. 2 reasons...MIP is not deductible as far as I know and your total payment may be actually lower, especially after taxes.

I have a good mortgage broker where you can get no cost loans if you are interested. PM me if you want the name/number. I have done 3 loans with him. He is located in San Diego and everything is done remotely.

Thanks Bruce! PM on the way!!

 

[redneck joe]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

here is Wells Fargo's reply



In reviewing your account, I find that you do not pay private mortgage
insurance (PMI), but rather a different type of mortgage insurance known
as mortgage insurance premiums (MIP). While we are unable to provide the
mortgage insurance deletion requirements via email, I am happy to report
that a letter detailing this information has been sent to your mailing
address of record. Please allow up to 10 business days for receipt. I
regret any inconvenience this delay may cause.



what is the difference in MIP?

 

[gm280]

Re: Told I cant get rid of PMI til 34K more or 3 yrs on FHA loan?

Here is an idea, if you are able to stop paying PMI or MIP, take that same amount and put it into a saving's account or invest it and in a few years you will have a very nice nest egg that could pay off your mortgage, OR invest that same amount in the mortgage principle and be way ahead... JMHO!