Can't Afford ANYMORE PMI on my mortgage-- What if you stop paying the PMI portion of mortgage & send in Partial Payment? (private mortgage insurance, approval)

[TimtheGuy]

What many posters are failing to realize in their compartive analysis, is that the OP is not on an "A" paper loan. Just because some of you pay $100/mo or $200/mo in PMI does not mean that is the rate that the OP pays.

Using a blanket statement like

For loans secured with less than 20% down, PMI is estimated at 0.5% of your loan balance each year

is simply not true. There are many variables involved including loan type, approval type, loan to value, credit score.....

[TimtheGuy]

Originally Posted by JohnKukujunior

So,

Does anyone know the answer to question: What would happen if I stop paying PMI and just pay the other portion of mortgage? Any legal advice?
As far as I know the lender will apply the payment amount to the interest/principle first and then cover the rest. How does it work with PMI?

Mine is $205 and I am trying to cancel it with CountryWide with no success.

Thank you.

I don't know for sure, but I am thinking you would be in default and they could foreclose.

[jtjmom]

I think TimtheGuy is right. However, how close is the OP to having 20% equity in the house? They will not automatically drop the PMI, you have to request it be dropped when you reach the "magic number." In her case, if the original loan amount was $143k, then when the principle hits $114,400, they can request that the PMI be dropped.

DO NOT just stop paying the PMI, or they will forclose.

Hope this is helpful. Good luck to you!

~D

[veuvegirl]

To stop paying the PMI you have to prove that your house has either increased in value; or you have paid down the debt. We have WM; showed them the value of our home by two independent realtors; and they would not accept it. We have to actually PAY their person $500 to come and evaluate our home to get rid of the PMI. Crazy.

[JohnKukujunior]

Thanks to everyone for the answers.

One more:
I called CountryWide and they told me that there is one more option to cancel PMI - no late payments for the last 24 months. Is it true?

Thank you.

[TimtheGuy]

Originally Posted by JohnKukujunior

Thanks to everyone for the answers.

One more:
I called CountryWide and they told me that there is one more option to cancel PMI - no late payments for the last 24 months. Is it true?

Thank you.

Definitely not.

[Fighter 1]

Originally Posted by JohnKukujunior

Thanks to everyone for the answers.

One more:
I called CountryWide and they told me that there is one more option to cancel PMI - no late payments for the last 24 months. Is it true?

Thank you.

No matter what you do or anyone in the same position does , you need to first file a U.C.C.-1 ( Uniform Commercial Code) on your property with the Secretary of the state that you are in , in the amout of your down payment + your payments that you have payed over the years. This is your lein ( value given)on that Real Estate.You are now first in line for payment should you be put into forecloser. Now the MTG. or the Bank can take the home back "BUT" first they need to pay the first lein. Thats YOU!!!
These facts I got from a title insurance Co. For those of you that say you never heard about this! I wonder why??

[dlh891]

Good luck getting anywhere with Countrywide. They bought a loan I had years ago and started charging pmi even though I was never supposed to pay it. My husband was paying the bills and thought the escrow went up over taxes and insurance (we were in Florida) and paid it for months. When I took over the bills I found it, notified them of the error and faxed over the closing docs, and stopped paying it. It took 3-4 calls a week for nine months before they removed it and issued me back $3100 that we had paid. They also reported nine months of late payments on my credit when I removed it from my payment but still paid the rest of the payment and escrow. They have never removed it from my credit even though I have all the documentation that it was never owed.

[redd46]

Is there a set % for PMI on Loans. Example above is 0.5%, is that standard or can it fluctuate by lender?

[ShanetheMortgageMan]

It's pretty standard with most PMI companies. You can mess around with different scenarios at MGIC Rate Finder: Calculate Quotes to determine the mortgage insurance rate. PMI rates vary by FICO score, LTV, transaction type, property type, loan amount, state (sometimes), program (ARM vs. fixed, interest only, etc.), loan term, and occupancy type.