Milk Man

Question about PMI on a FHA loan, I have an FHA loan that carries the Mortgage Insurance monthly. Ive had the house for little over 2 years. My understanding is the PMI goes away when the loan has 78% left to pay off, or 5 years has passed. I've read you may be able to call lender and ask if they will remove the PMI. Has anyone done this?

Thanks

V1ROT8R

I was told that I had to get an appraisal...

Chperplt

Sorry to tell you, but the rules changed 3 or 4 years ago (and recently changed again).

You have to carry PMI for 5 years. After 5 years if your loan is 78% LTV of your original appraised amount, PMI can be removed. If not 78% of the original amount, you can pay for an appraisal and try and get to that value.

bcpilot

The set of rules that apply to you & FHA goes by, are based on the date the FHA case number to your property was assigned, not the date you closed on the transaction.

The rules that changed just recently will not affect the case numbers issued 2 yrs ago. But the FHA upfront & monthly MI premiums have been changing pretty much every year, so it will be hard to predict what is your MI rate. ( it should be on your mortgage statement)

You will be required to keep paying for MI for at least 5 years or more until your value reaches 78%, whichever happens later.

However, if you purchased your home a little over 2 yrs & depending on where you live, there is a very big possibility that the value of your home may have increased by 15% to 20%.

So, it would be a good idea to run the comps in your area & if you have the value, refinance in to a 30 yr fixed conventional loan with NO MI.

You should have done it this spring, that's when the rates were the lowest but you still may find a decent week to find & lock a good rate.

At the very least, exploring that option will not hurt you.

Feel free to ask me anything on this topic.....

Milk Man

Thanks, I called the lender and was told at least 5 yrs. My home value has increased significantly just based on the houses around me that have been listing for. I have not had an appraisal to see what my house is worth, but was told at the 5 yr mark I will be able to get an appraisal and if the house has increased in value that will make my loan 20% paid off from the new appraised value then I will be able to remove the PMI. My PMI is $182/mo.

bcpilot

The value is always based what the nearby comparable properties sell for, called comps. Either your realtor, the one who helped you buy the home, or any local realtor, should be able to pull comps in your area and make a very good estimate of value.

If you are paying that much for pmi and the value of property has increased, then I'd suggest that you should seriously explore the option to refinance.

If your value shows a 20% equity, then it makes perfect sense to refinance into a 30 yr conventional. Even if you have 10% equity, it will be cheaper to refi.

There are a lot of options at no cost to borrower, where the lender waives or eats the lender's fee & even pays the closing fees. It could mean a minimum of $182 payment reduction per month for you.

What state is the property in & what is your interest rate??

If you don't want to share these details on the public forum, pls feel free to pm me...

zarnikc

Feel free to PM me. In addition to flying, I have owned a mortgage company for the last 14 years. I can talk you through the nuances of refinancing with respect to harp, FHA, conventional, VA, investment properties, fannie/freddie loans, arms etc. ANd that goes for anyone that needs help.

Thanks
Chris

Opakapaka

Are you responsible for getting ur own appraisal or would a lender get that?

bcpilot

It is all negotiable, you can negotiate with the lender to pay for your appraisal and / or some or all the closing costs..

You have to look at the numbers and determine whether it is a good idea to pay from your pocket, roll into the loan or take a slightly higher rate and have the lend pay for them..

Feel free to message me if you have questions about how it works..

PS: I am not soliciting for business, just trying to help fellow members with what I can...