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Old 02-21-2010, 09:57 AM
 
3,576 posts, read 5,902,769 times
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Quote:
Originally Posted by dazzleman View Post
What is your current value? Your bigger problem now is that the house is probably worth well less than it was when it was appraised for $161K in 11/05. With the lower current value, you might not have enough equity to drop PMI.
Bingo! I doubt they can refinance (without bringing more money to the table to lower the loan value to less than 80%) because of depressed home values form peak 2005 prices. Plus appraisals are stricter now.

To the OP, I understand about you wanting to control what goes into the escrow (thus avoiding the PMI).

But you need to thread carefully. You need to ask the bank (or look into your contract). What's their stipulation about getting PMI removed? Do they need to reappraise the home again. Since the last appraisal was done in 2005 at or near the peak of the bubble in most areas of the country.
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Old 02-21-2010, 11:43 AM
 
243 posts, read 1,499,280 times
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Quote:
Originally Posted by bigdaddyluv View Post
We built our house in 11/03 for $125000. Back on 11/05 we requested to drop PMI. We went through the bank's "required" appraiser, who then appraised it at $161000. Bank then stated our balance had to be at/below $120750 (75% LTV) because it was between years 2-5 of the loan. Just last month (just beyond our 5 years which the required balance changed to 80% LTV) we asked that our PMI be dropped. The balance on the loan was now 121000. They again refused because we were late the last few months (but we had never been late prior to this time for 5 years!) The reason we were late was because the taxes & ins went up on our property, which is all bundled in our monthly payment, bringing it over $1000/mo. Our actual mortgage pymnt is only about $675, easily affordable. We have an ARM but the rates are very good even when topped out; we're at 4.75% now. Is there anything we can do to get them to drop the PMI? Our bank requires that if we drop PMI, they will also drop the taxes & hazard, which is fine with us because the bank always pays it at the last minute, requiring a bigger payment (county gives discount for early payment). These "extras" are what's killing us...not the actual mortgage. Every time we talk with the bank, they are not helpful and just keeping read their script to us. If it makes any difference, the loan is through a credit union.
Do you have a FHA loan? If you do, then the regular LTV below 80% and 24 months good payment history does not apply to you. Just something to think about...

Mortgage Company's won't remove MIP or mortgage insurance premium this is something most of you had to hear when u applied for removal of MIP from your FHA loans. And if by any chance your loan closed on Jan 1, 2001. Then, there are only two ways to remove mortgage insurance that either you pay off the whole loan or refinance your loan. Generally FHA loans don't have a PMI or private mortgage insurance but rather they have MIP and at the same time is less expensive monthly. The borrower can pay for MIP either at closing or monthly along with other mortgage payments. As per the FHA regulations, borrowers whose loan closed after Jan. 1, 2001, if the upfront premium is already paid, then the MIP will come off once the loan to value reaches 78% depending on the initial purchased price/value of the home and the principal payments that were made against the loan. And if the borrower didn't pay any upfront MIP, then you cannot get a removal from the MIP of your loan. In this situation refinancing is an option that can be considered, but that is also applicable if your home's value has gone up enough that you are allowed to take up conventional financing without any PMI.
If any of below mentioned conditions applies for you then u can get a MIP removal from your FHA loan:
1. Your MIP can be cancelled if you have if your mortgage terms more than 15 years and the loan to value ratio goes to 78%, with condition that you have paid annual mortgage insurance premium for a minimum of 5 years.
2. If your mortgage with period of 15 years or less and having a loan to value ratio of 90% or more your MIP can be cancelled if the loan to value ratio goes to 78%, the time for which mortgagor has given the annual mortgage premiums doesn't matter here.
3. If your mortgage with period of 15 years or less and having a loan to value ratio of 89.99% or less you wont be charged any annual MIP.
Though, your mortgage will be canceled as mention above, but the insurance contract will remain in effect for its complete term.
It's the decision of FHA which will decide when the borrower has reached the given mark of loan to value ration on the basis of lower on the sale price or appraised value at the time of origination. Appraised value which is new will not be considered in any case.
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Old 07-16-2010, 08:09 AM
 
1 posts, read 24,126 times
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Default Having (almost) Same Problem Here... What To Do????

I ran across this forum post searching for ways to combat this problem. I too have a mortgage with Chase (conventional 30 year fixed rate loan) with NO late payments EVER! Have had it for 7 years now.

When first requesting our PMI removal, chase informed us to get an appraisal, which we did. Our request was denied because we were at just a few hundred dollars over 80%. The letter we received specifically stated it needed to be 80% and exactly what the priniciple balance should be. The gave us a time frame to pay it down and put in another request.

We did all this, everything was in order and we followed their requirements exactly. And our request was once again denied but this time they say it needs to be 65% - with no explanation why it would change or why they didn't tell us to begin with. By this time we've paid extra on our principle and paid for appraisal.

What can we do??
Natalie

[mod]No links to personal website allowed, per the Terms of Service[/mod]

Last edited by Green Irish Eyes; 07-16-2010 at 08:45 AM..
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Old 07-16-2010, 08:40 AM
 
Location: Laguna Niguel, CA
768 posts, read 3,957,788 times
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On conventional loans, PMI removal procedures are left completely up to the lender. There is no requirement for them to ever remove PMI as far as I know - this is why it's a common misconception that starting at 95% LTV with an FHA loan vs. 95% LTV with a conventional loan, with modest appreciation, PMI will be removed sooner with conventional than with FHA. Still, most lenders will drop the PMI on conventional after you pay it for a couple years and if you have 20% equity (per an appraisal paid by you) at the time of the request.

nhinnen, it appears that perhaps Chase made a judgment call that you were in a declining market and figured even if you have the 20% equity now, very shortly after you wouldn't and therefore is requiring more than 20% equity in order for the PMI to be removed. Policies/requirements change all of the time, and I don't believe you have the right to know why their policies changed, just what they have changed to and when they did change. Now if the requirement was 65% all along, and you were told it was 80%, and then acted based on their information... I think they'd be at least required to reimburse you for the additional appraisal you paid. I'd call up, don't tell them it's "you", and ask when their policy changed from requiring 20% equity to 35% equity. If it was after you attempted to remove PMI the first time, but before you attempted to remove PMI the 2nd time, then it sounds like you were just caught in the middle of a guideline change.
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Old 07-16-2010, 07:32 PM
 
Location: MID ATLANTIC
7,598 posts, read 17,614,249 times
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Guidelines are constantly changing, for servicing as well as, new loans. The only hard and fast rule is for when the loan is paid down to 78% of the original value. If you are late with your payments, that can negate any requirements. I suspect we will see this requirement to change, according to market conditions.

Seriously, refinance if you can, but I suspect the OP cannot, due to declining values. It will most likely be a while, values are expected to continue to decline over the next 12 months.
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Old 07-23-2010, 02:41 PM
 
Location: Birmingham, Alabama
2,056 posts, read 1,836,365 times
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We bought our home in February 2004, pretty darn close to the peak in our area of Birmingham, AL metro. I think we actually paid a little more, like $2,000 more, than any home on our street had sold for previously. We thought this was pretty rational considering the property has the largest sq ft of actual real estate in the neighborhood. The appraisal was where it should be, naturally, considering the time we were in.

I've been paying PMI on the note since that time, and it's around $100 extra bucks per month. I've thought of applying to get the mortgage reworked, not because I think property values have sunk, but because we've paid this long, put zero down, and never had a hiccup in the payment status. I think, after 7 years, with virtually no appreciation, maybe slight, and a good payment history, things should be looked at again.

Are loan mods only done on homes in risk of foreclosure? The refi would be expensive otherwise, and I don't know that we want to stay in the property that much longer. However, due to our job losses of the past couple years, we wouldn't be able to buy again, with 20% down, anytime soon.

Sometimes, I just sit back and say "don't rock the boat. Don't try to improve a situation that isn't broke".
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Old 07-23-2010, 04:04 PM
 
Location: New York
2,251 posts, read 4,160,232 times
Reputation: 1607
Quote:
Originally Posted by ShanetheMortgageMan View Post
....PMI removal procedures are left completely up to the lender. There is no requirement for them to ever remove PMI as far as I know.....

nhinnen - if the requirement was 65% all along, and you were told it was 80%, and then acted based on their information... I think they'd be at least required to reimburse you for the additional appraisal you paid....

Shane - you hit a sore spot as I was reading your post.

From the time we brought our home until the time we refinanced. The value of our home went up. My LTV was 24% and I was still paying PMI. It was an expensive lesson for me. Their was no one I could speak to about all the years I paid the PMI charge where I didn't have to.

We brought our house in 1992, financing 90% with Washington Mutual. In early 2002 started questioning why my PMI had not dropped of. I contacted W.M. and they said it was the borrowers responsibility to notify them.

WM wanted us to use their appraisal company to appraise our home. Their appraisal fee was $750, which I thought was excessive.

After the fact - in 2002 refinanced into a 240mth loan, saving money by consolidating bills. We also were able to drop our PMI.

Rhinnen - I agree with Shanes statement. If you were told it was 80%, they should honor that.

If by chance you have the original loan note, there might be a paragraph explaining when the PMI is to drop off.


G.L.

..
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Old 09-28-2011, 09:55 AM
 
1 posts, read 21,950 times
Reputation: 11
Default Response to Shane the Mortgage Man

Any time someone is taking my money, I absolutely have a right to know of ANY policy changes.
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Old 09-30-2015, 08:57 PM
 
4 posts, read 9,251 times
Reputation: 10
Do I get to count back to the original date of the loan existence when the notes been sold a few times? I have NationStar and they don't move an inch. I've sent in paperwork and sent many emails. Now I just requested the paperwork again. My purchase price/loan amount was $99,000 and had mortgage insurance in the payment. I streamlined once after that in 2009 to lower my interest rate but my note has sold once or twice since then. My loan balance is now $92,000 and my value is $165,000 or higher so I am well withing the LTV requirements and I can't get Nationstar to respond! What to do!!!???
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Old 09-30-2015, 10:55 PM
 
Location: Phoenix, AZ area
2,931 posts, read 2,389,174 times
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Quote:
Originally Posted by ellie_b6 View Post
Do I get to count back to the original date of the loan existence when the notes been sold a few times? I have NationStar and they don't move an inch. I've sent in paperwork and sent many emails. Now I just requested the paperwork again. My purchase price/loan amount was $99,000 and had mortgage insurance in the payment. I streamlined once after that in 2009 to lower my interest rate but my note has sold once or twice since then. My loan balance is now $92,000 and my value is $165,000 or higher so I am well withing the LTV requirements and I can't get Nationstar to respond! What to do!!!???
The streamline date would be the date you use. The LTV needs to be 78% of the value at time of purchase, if they did an appraisal when you streamlines (not common) then you would use that for your LTV but if they didn't it would be the last appraisal done. You can try to refi with a new lender, and might be your best option, since rates are much better now than in 2009 but you would have to qualify. Otherwise you have to hit 78% LTV and 5 years of the loan, part 2 is met if you streamlined in 2009 but with a $92k balance part 1 is far off.
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