U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 09-15-2015, 02:12 PM
 
1,092 posts, read 813,248 times
Reputation: 1267

Advertisements

We recently purchased a house and went with traditional PMI. We were told we can have the home reappraised after 1 year and if the equity in the house is high enough have the PMI dropped. This works for us because our house was initially appraised well above the purchase price. Hopefully 1 or 2 upgrades this year and the appraisal will come in high enough. Its probably worth looking into this.

Also keep in mind most "experts" are saying mortgage rates have bottomed and will likely see 4.5-5% going into next year. If that happens there might be a quick sharp rise in housing prices as people rush to buy homes trying to lock in lower rates driving up housing prices with demand, this would also increase appraisals before the home values eventually level out.
Reply With Quote Quick reply to this message

 
Old 09-15-2015, 03:31 PM
 
Location: Charlotte
645 posts, read 755,507 times
Reputation: 664
Quote:
Originally Posted by WaldoKitty View Post
There is no PMI on a FHA loan. They require you to pay the entire amount up front and that is normally rolled into the closing costs. At one time you could request a refund if you paid the loan off early (re-finance or sell home) but I'm not sure if this is the case now.
Since when?

There will be no change in Annual Mortgage Insurance Premiums for all case numbers assigned on or after January 26th, 2015 for the following:
  1. On loans with a Loan to Value of less than or equal to 78% and with terms up to 15 years. The annual MIP for these loans will remain at 45 basis points.
  2. On terms <= 15 years and loan amounts <=$625,500 - If the loan to value is <= 90%, the Annual Premium remains the same at 45 basis points (bps). If the loan to value is >90%, the Annual Premium remains the same at 70 basis points (bps).
  3. On terms <= 15 years and loan amounts >$625,500 - If the loan to value is 78.01% - 90.00%, the Annual Premium remains the same at 70 basis points (bps). If the loan to value is >90%, the Annual Premium remains the same at 95 basis points (bps).
It gets better from here:



FHA Requirements: Mortgage Insurance
Reply With Quote Quick reply to this message
 
Old 09-16-2015, 09:22 AM
 
Location: Charlotte
162 posts, read 350,758 times
Reputation: 122
What happens with property tax if an appraisal is done, and the house is in fact now valued high enough to drop PMI......does the city and county then tax you at that higher rate offseting the savings of dropping PMI in the first place?
Reply With Quote Quick reply to this message
 
Old 09-16-2015, 12:37 PM
 
Location: Southport
4,639 posts, read 4,780,176 times
Reputation: 3413
Quote:
Originally Posted by bigbri20 View Post
What happens with property tax if an appraisal is done, and the house is in fact now valued high enough to drop PMI......does the city and county then tax you at that higher rate offseting the savings of dropping PMI in the first place?
No. There's no direct connection between appraised value and assessed value. The county doesn't get a copy of your appraisal. Assessments are conducted every X number of years and only in very rare cases will the tax value change in between assessments.
Reply With Quote Quick reply to this message
 
Old 09-16-2015, 07:18 PM
 
1,092 posts, read 813,248 times
Reputation: 1267
Quote:
Originally Posted by carolinadawg2 View Post
No. There's no direct connection between appraised value and assessed value. The county doesn't get a copy of your appraisal. Assessments are conducted every X number of years and only in very rare cases will the tax value change in between assessments.
Exactly.. If you don't want to lock up the 20% this is the best way to get rid of PMI.

Doing a lender paid PMI locks you into a higher rate for the life of the loan.
doing an 80/10/10 usually means a higher overall rate with a high interest Heloc

If you can get rid of your PMI inside of like 4 years with an appraisal its your best bet, outside of putting down 20% in the first place. The sooner you can drop it with an appraisal the better.

On our appraisal for example it mentions worn carpet on the steps and a guest bathroom that could use updating. So these will be the 2 things we'll focus on over the next year before having the home reappraised.
Reply With Quote Quick reply to this message
 
Old 10-16-2016, 10:19 PM
 
119 posts, read 159,873 times
Reputation: 41
I finally hit the 22% (23% to jump past the 22% to be safe) equity and my understanding for a convential mortgage is if you have a good history (no late or missed payments) the PMI can be requested to be removed in writing once the equity reaches 20% based off of the original value, which it can be removed, rejected, appraisal requested, etc... Once 22% equity then the PMI MUST be removed based off of the original value regardless if the home appreciated or depreciated. I received a letter in the mail, which is a little unclear to me... It is saying the PMI can be removed with three options with an appraisal

1. Once 20% equity is reached based off of the original value with appraisal
2. Once 25% equity is reached based off of the current value after 2 years
3. Once 30% equity is reached based off of the current value after 5 years

I called customer service, which is a little frustrating... as they noted the specific department does not have a dial in number (only can contact the customer with responses through written mail) and the first person told me I need to order an appraisal to remove the PMI or I can wait 2 years with 25% equity and it will remove WITHOUT an appraisal. The second person told me I need to order an appraisal to remove the PMI or I can wait 2 years with the 25% equity and order (REQUIRED) an appraisal. I asked the same question to the second person and was told an appraisal is required regardless, which does not make sense to me. I even asked if I have 99% equity based off of the 3 options above and original value you are saying an appraisal is required, which the answer was yes. I have not held the mortgage for 2 years, but have 23% equity now. I am confused because my understanding is that the PMI must be removed once 22% is reached and I do not understand why 1. says original value and 2. & 3. say current value. I would think 2. & 3. would not require an appraisal even though the top above line notes (seems misleading) an appraisal being needed, but does not note specifically like 1. in the bullet...Anyways I was hoping someone might be familiar with these rules, as I have not had much luck finding anything specific when I search online, but maybe I am missing something :-). The funny thing is the home has gone up in value, but I do not want to pay for an appraisal. That should not be required from my understanding and would be about 6 months worth of PMI payments anyways. It seems since the exact department cannot speak to me by phone I am receiving different answers (customer service that fields general questions) and I am thinking maybe the specific lender has rules for the PMI, but I thought it is a law and the PMI must be removed after 22% equity is reached based off of the original value for all lenders. Is anyone able to shed any light, as I am hoping I am missing something :-)?

Last edited by sixburgh90; 10-16-2016 at 11:14 PM..
Reply With Quote Quick reply to this message
 
Old 10-17-2016, 04:30 AM
 
3,774 posts, read 6,990,604 times
Reputation: 4402
Refinance. That's a damn good way to lose PMI. Otherwise? Prepare to get short-shrifted.
Reply With Quote Quick reply to this message
 
Old 10-17-2016, 06:07 AM
 
5,869 posts, read 7,703,331 times
Reputation: 3366
I don't know the exact "requirements" but I think it depends on the type of loan.

I am a bit confused by the 3 options you were given. I would think anything that's based on the current value would require a new appraisal...how else would they know the current value? But I would think the 20% of original value should not require a new appraisal, are you sure it's not just referring to the appraisal from when the house was purchased? So do you meet the 20% of the value from when it was purchased (which may or may not be the purchase price)?

You can try asking on the C-D Real Estate mortgages forum.
Reply With Quote Quick reply to this message
 
Old 10-17-2016, 06:57 AM
 
119 posts, read 159,873 times
Reputation: 41
Quote:
Originally Posted by GoPhils View Post
I don't know the exact "requirements" but I think it depends on the type of loan.

I am a bit confused by the 3 options you were given. I would think anything that's based on the current value would require a new appraisal...how else would they know the current value? But I would think the 20% of original value should not require a new appraisal, are you sure it's not just referring to the appraisal from when the house was purchased? So do you meet the 20% of the value from when it was purchased (which may or may not be the purchase price)?

You can try asking on the C-D Real Estate mortgages forum.

Thanks GoPhils! That is a good point, as I have reread those lines multiple times to try and see if I was missing something. The original appraisal (referring to an appraisal being needed for 1.) did not factor, but the appraisal was exactly the same as the purchase price. The 23% equity would be met in both scienarios
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 12:01 AM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top