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I need help, I live in NC. Last year I got a mortgage for 234,900 on a house appraised for the same. I put $0 down on a 30 yr fixed 7.6% with Suntrust.
I pay over $500 a month in PMI, which a friend recently told me is WAY too much.
My question is, is there a cap for PMI in NC? How do you get a hold of a PMI schedule that shows what you are supposed to be paying? Does anyone what I should do if this really is to much to get my money back, because obviously the bank/insurance co. is gonna fight me tooth and nail before giving a refund.
(I guess I have more than one question)
Anyone know the answer to these or where I can obtain evidence to support my "I'm being overcharged" theory, like caps or pmi schedules?
Thanks in advance.
I live in NC, and there's no PMI charts that show caps.
I would try to refinance if possible.
PMI rates are determined by your credit score.
You maybe able to take out 1 loan with LPMI. Lender Paid PMI with the same rate you have. This of course applies to your credit score, and doc type.
Quote:
Originally Posted by tmoe4
I need help, I live in NC. Last year I got a mortgage for 234,900 on a house appraised for the same. I put $0 down on a 30 yr fixed 7.6% with Suntrust.
I pay over $500 a month in PMI, which a friend recently told me is WAY too much.
My question is, is there a cap for PMI in NC? How do you get a hold of a PMI schedule that shows what you are supposed to be paying? Does anyone what I should do if this really is to much to get my money back, because obviously the bank/insurance co. is gonna fight me tooth and nail before giving a refund.
(I guess I have more than one question)
Anyone know the answer to these or where I can obtain evidence to support my "I'm being overcharged" theory, like caps or pmi schedules?
Thanks in advance.
I believe the amount of the down payment also dictates how much you pay in PMI. Once you have twenty percent of your total loan paid, PMI should be dropped.
I believe the amount of the down payment also dictates how much you pay in PMI. Once you have twenty percent of your total loan paid, PMI should be dropped.
True, but in the OP's case with zero down, that will be a long, long time. Even when he passes the 20% number, he will have to call and beg them to remove the PMI. They don't give up their golden goose without a fight...!
True, but in the OP's case with zero down, that will be a long, long time. Even when he passes the 20% number, he will have to call and beg them to remove the PMI. They don't give up their golden goose without a fight...!
Once you are below 78% loan to value (22% equity) they have to drop it legally, so its not much of a fight. At 80% you can present an appraisal or proof and from my experience lenders are usually fairly good about working with you (of course they review the appraisal to make sure its not inflated).
The lender really does not see any "profit" from the PMI, the money goes right to the MI company. Its a nice safety net, but once you hit >20% they will work with you.
I need help, I live in NC. Last year I got a mortgage for 234,900 on a house appraised for the same. I put $0 down on a 30 yr fixed 7.6% with Suntrust.
I pay over $500 a month in PMI, which a friend recently told me is WAY too much.
PMI is based on your down payment, loan amount, credit score, loan type (stated or documented income for example) and other factors. It is hard to tell where it should be without more details, but $500/month is much higher than I have ever seen for a $235,000 loan.
Quote:
Originally Posted by tmoe4
My question is, is there a cap for PMI in NC?
There is no real "cap". Based on the paramaters above the underwriter at the lende will use a MI schedule to come up with what your monthly PMI. They will then order MI from one of the PMI companies.
Quote:
Originally Posted by tmoe4
How do you get a hold of a PMI schedule that shows what you are supposed to be paying?
One problem is PMI schedules have changed SEVERAL times in the last year. Rates have increased and program guidelines restricted. The MI amount will be based on what was in effect when you were approved, not what is available now.
Quote:
Originally Posted by tmoe4
Does anyone what I should do if this really is to much to get my money back, because obviously the bank/insurance co. is gonna fight me tooth and nail before giving a refund.
First you need to see if you have the documents from your closing. It would also be good to contact the person that did the loan. The first step is to find out if the MI company was charging the $500/month. If so you need to take it up with them.
If they were charging less and the error is on the bank side then they would be the ones to speak to.... so its about reading through the paperwork with someone you trust and seeing where the problem lies.
Quote:
Originally Posted by tmoe4
(I guess I have more than one question)
Anyone know the answer to these or where I can obtain evidence to support my "I'm being overcharged" theory, like caps or pmi schedules?
Thanks in advance.
Good luck... hopefully you have the paperwork from closing/application and can track down the problem. There may be a reason why the PMI is so high... but if it is $500/month then it sounds like something is wrong.
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