U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [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)
 
Old 08-24-2007, 06:26 PM
 
Location: Its a Surprise!
206 posts, read 856,025 times
Reputation: 151

Advertisements

I purchased a rental house in California a few years ago and put 10% down. This required me to have a PMI which is about $160/month. I was told by the loan broker that as soon as the house appreciated to where I had about 20-25% equity I could have the PMI taken off. Well that happened within less than 6 months. I called the mortgage company and they sent me a letter stating I had to wait 2 years before I got the house re appraised to get the PMI taken off. So I thought okay no problem I guess I will just wait 2 years. Now after the 2 year period I contacted them again and they sent me a letter again this time it says I need to have have a LTV of 70% but the kicker is new appraisals will not be accepted to lower the LTV to the required 70%. So basically what I have to do it send them a big check to get this $160/month fee taken off.
Is there anything I can do? Is this legal for them to make me keep the PMI even though the house has almost doubled in price?
Quick reply to this message

 
Old 08-24-2007, 09:36 PM
 
Location: PA
1,032 posts, read 3,913,129 times
Reputation: 432
Quote:
Originally Posted by JasonS View Post
Is this legal for them to make me keep the PMI even though the house has almost doubled in price?
We had a similar situation with our first house - we were told that we had to reach 20% equity through home improvments, not solely thtough appreciation.

Hard to do when it's new construction.

PMI is tricky, and every lender has different rules.
Quick reply to this message
 
Old 08-24-2007, 09:42 PM
 
Location: Raleigh, NC
178 posts, read 1,153,394 times
Reputation: 129
Perhaps these articles I found on the web will be helpful....

STLtoday - Homes - Columnists (broken link)

It pays to own rental real estate
Quick reply to this message
 
Old 08-24-2007, 10:47 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,457,629 times
Reputation: 1008
i would go up the ladder and speak with a manager.
normally the company has an approved appraiser that they will use.
it will cost you about 400 bucks JUST to find out if you qualify for no more PMI.
I would right certified letters to the execs.....but the point is..that in this market they DONT have to. lenders are changing rules everyday....and i would on them about it.
it may take 2-3months.
You dont need to pay down...you can probably do a rate/term refi, and pay maybe 2-3k to do the refi......it might hurt your rate though.

Quote:
Originally Posted by JasonS View Post
I purchased a rental house in California a few years ago and put 10% down. This required me to have a PMI which is about $160/month. I was told by the loan broker that as soon as the house appreciated to where I had about 20-25% equity I could have the PMI taken off. Well that happened within less than 6 months. I called the mortgage company and they sent me a letter stating I had to wait 2 years before I got the house re appraised to get the PMI taken off. So I thought okay no problem I guess I will just wait 2 years. Now after the 2 year period I contacted them again and they sent me a letter again this time it says I need to have have a LTV of 70% but the kicker is new appraisals will not be accepted to lower the LTV to the required 70%. So basically what I have to do it send them a big check to get this $160/month fee taken off.
Is there anything I can do? Is this legal for them to make me keep the PMI even though the house has almost doubled in price?
Quick reply to this message
 
Old 08-25-2007, 12:50 PM
 
Location: California
510 posts, read 3,029,044 times
Reputation: 383
Look through all of your old loan documents, it should be discussed in there. Typically it is the 80% mark, and all you need is the appraisal.

What is your rate now? I expect it's quite low... in any case no matter, time for a white lie. Do what banker said, but let them know you've been offered a comparable 30 year fixed rate... (as long as it's not too low...don't say less than 6%). Now, just tell them that you're planning on refinancing for two reasons. The first and most important is to get rid of the PMI, the second is because you're so upset with their company. You've been spoken to in a very rude manner on 3 different occasions when you've called in to ask for help, and you'd rather pay more money to someone else that you can trust, and who will appreciate your business.

I threw in that last part in case your rate is in the 5's... that way you'd sound like you were working from an emotional stand point, rather than logical... people never know what to think when dealing with decisions based on emotions

Granted, your loan rate could be so low they'd actually be happy to get paid off as they could be losing money if they put that money into action at a higher rate... so be sorta careful with that.

You can also say that you sent a letter to your states Department of Real Estate asking for their help, as you feel you've not been treated fairly as well. Another idle threat, but this one can work quite well also.

Always be sure and ask for people's FULL name and employee number at the beginning of every call... You're asking just in case you get disconnected Then later of course you can say "Well I'll be sure and put your name and ID number in the letters I write to be sure you get credit for not helping me" ...by doing this you create a personal fear of repercussion to this one person... otherwise they might just pass the buck because they just work there, and have nothing to lose by moving you on or saying "no".

I'm still hoping your old loan docs offer the info you need...
Quick reply to this message
 
Old 08-25-2007, 08:47 PM
 
Location: Orlando FL
1,065 posts, read 3,777,765 times
Reputation: 424
How is PMI determined...I had heard the same thing, that if you get an appraisal and you are now at th 75-80% LTV level PMI could be taken off.

I have never dealt with anyone having PMI, so don't know what kind of papers they sign concerning the PMI. I would think there would be a PMI contract with specific course of action and terms to remove PMI. Is there not?
Quick reply to this message
 
Old 08-25-2007, 08:56 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,457,629 times
Reputation: 1008
Most lenders remove PMI at the 75-78% LTV mark as stated on loan disclosures. You will need to call the lender, and have an APPROVE APPRAISER with their company. They will come out, and do a full appraisal, and send it over to the lender. (Costs comes out your pocket)
It can take 60-90 days after that to remove the PMI from the monthly payment.
There isnt a PMI contract, but there are PMI disclosures.
PMI disclosures are given out to almost every type of loan even though there might not be any PMI.

Quote:
Originally Posted by GregTraub View Post
How is PMI determined...I had heard the same thing, that if you get an appraisal and you are now at th 75-80% LTV level PMI could be taken off.

I have never dealt with anyone having PMI, so don't know what kind of papers they sign concerning the PMI. I would think there would be a PMI contract with specific course of action and terms to remove PMI. Is there not?
Quick reply to this message
 
Old 05-01-2008, 11:34 AM
 
1 posts, read 8,991 times
Reputation: 11
Default Removing PMI

I share your frustration! I had the same problem with a rental property I own. In fact, I had so many conversations with the Chase PMI Dept Manager I convinced her to write a report for my website that describes all the ins and outs of PMI. It is very thorough and will give you the necessary info to go to bat with your lender. The report can be downloaded for free at
[[url=http://www.whisperdeals.com/downloadables.php]WhisperDeals.Com : Downloadables[/url]] I hope this helps.

Brian

Last edited by bcart; 05-01-2008 at 11:36 AM.. Reason: bad link
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.


 
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:
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 > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, 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