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

[agallant80]

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

I did not read through the whole thread but PMI lives forever now. The only way out is to refinance when you have 20% equity in your house. There was a time when you could call the bank and have it removed after 5 years not any more. If you can swing it drop the PMI. With that said now a days I am not sure how good of an idea it is to use your house as a savings account, you extra 35K may do better in an investment.

 

[lncoop]

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

June 3, 2013 is the deadline from what I understand.

Interesting. I refinanced a few years ago and went FHA. At that point all FHA loans incurred PMI but it automatically stopped after a period of time; a year as I recall.

 

[bruceb58]

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

Interesting. I refinanced a few years ago and went FHA. At that point all FHA loans incurred PMI but it automatically stopped after a period of time; a year as I recall.

Before that date, it's 5 years and 20% of the value of the house when the loan was processed.

 

[ezbtr]

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

Before that date, it's 5 years and 20% of the value of the house when the loan was processed.

yup Bruce is what mine stipulates, but stinks even if appraisal goes up in value, PMI remains, only way out is early lump sum payoff so 20% is met.