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PMI - a different question
Posted by: thermarest
Date: January 08, 2015 12:44PM
A separate thread so as not to sidetrack space-time's question.

Does anyone here have experience getting a lender to voluntarily cancel PMI, say when the ratio of loan balance to *current* value of the house reaches 80%?

The rules only require that they do so when the loan balance gets to 80% of the price of the home at the time of purchase. But in a rising market or if one has done substantial remodeling, the current value may well exceed the original price.

I have read some account online of this happenign, but sounds like its completely at the discretion of the lender. I plan to try this next summer and just wondering how likely it is and thinking about strategy for the request.
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Re: PMI - a different question
Posted by: Speedy
Date: January 08, 2015 12:50PM
smiley-laughing001 emoticon-tv-015 smiley-signs003 smiley-rpg028 smiley-signs117 goodone jest smiley



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: PMI - a different question
Posted by: deckeda
Date: January 08, 2015 12:54PM
Would it be worth it to you to refi?
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Re: PMI - a different question
Posted by: kurtzie
Date: January 08, 2015 12:57PM
This is doable, but you have to have an appraisal done...
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Re: PMI - a different question
Posted by: mattkime
Date: January 08, 2015 01:21PM
from wikipedia - Legally, there is no obligation to allow the cancellation of MI until the loan has amortized to a 78% LTV ratio (based on the original purchase price).



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Re: PMI - a different question
Posted by: thermarest
Date: January 08, 2015 01:37PM
Quote
thermarest
Does anyone here have experience getting a lender to voluntarily cancel PMI

Does anyone here have experience getting a lender to voluntarily cancel PMI
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Re: PMI - a different question
Posted by: Speedy
Date: January 08, 2015 01:49PM
Quote
thermarest
Quote
thermarest
Does anyone here have experience getting a lender to voluntarily cancel PMI

Does anyone here have experience getting a lender to voluntarily cancel PMI

smiley-laughing001 emoticon-tv-015 smiley-signs003 smiley-rpg028 smiley-signs117 goodone jest smiley



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: PMI - a different question
Posted by: Schpark
Date: January 08, 2015 02:18PM
Yes I did it in the 90's. It was due to the rapid house price appreciation and I got an appraisal to show that I hit the 20% threshold so they dropped PMI.



"Without death, life would lose much of its meaning. My goal is to live in such a manner that I alter world in some fundamental way before I'm gone. As I get older and watch my son grow I realize I've already achieved my goal." - Ztirffritz
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Re: PMI - a different question
Posted by: JoeH
Date: January 08, 2015 02:19PM
Quote
thermarest
Quote
thermarest
Does anyone here have experience getting a lender to voluntarily cancel PMI

Does anyone here have experience getting a lender to voluntarily cancel PMI

Only once back in the '90's. But the bank was already in legal and regulatory trouble for mishandling a number of issues related to mortgages they assumed during a FDIC & state regulatory sponsored takeover of a failing bank. They were quick to act on the request because the ratio had met the then required 80%, and granting it would leave one less item on their potential trouble list.
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Re: PMI - a different question
Posted by: thermarest
Date: January 08, 2015 03:35PM
Thanks.
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Re: PMI - a different question
Posted by: guod
Date: January 08, 2015 06:08PM
Yes, I was able to get my lender to cancel the PMI.

I just sent a letter showing the cost of the house (we built) and the amount that we had paid on the loan to that point with the math showing that we had reached 20% equity. They replied with a letter saying that the PMI was no longer needed

We built in 1999, and put 10% down. We paid about $130 extra eaxh month which went directly to principal. After the PMI was removed, we also put that amount towards principal.
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Re: PMI - a different question
Posted by: Rick-o
Date: January 08, 2015 08:21PM
Quote
guod
Yes, I was able to get my lender to cancel the PMI.

I just sent a letter showing the cost of the house (we built) and the amount that we had paid on the loan to that point with the math showing that we had reached 20% equity. They replied with a letter saying that the PMI was no longer needed

We built in 1999, and put 10% down. We paid about $130 extra eaxh month which went directly to principal. After the PMI was removed, we also put that amount towards principal.

Similar experience with me. When I got to greater than 20%, (I was doubling the payment each month) I started sending them notices that I wanted to cancel PMI. It took a few attempts, but they must have finally got sick of my requests, as they finally relented.

It seemed silly to me that I was paying for insurance that really didn't benefit me.



Mr. Lahey: A lot of people, don’t know how to drink. They drink against the grain of the liquor. And when you drink against the grain of the liquor? You lose.

Randy: What the @#$%& are you talking about?
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Re: PMI - a different question
Posted by: onthedownlow
Date: January 09, 2015 12:38AM
Quote
Rick-o
Quote
guod
It took a few attempts, but they must have finally got sick of my requests, as they finally relented.

That was sort of my situation - I had inquired several different times, and I figured they eventually realized I would not stop bugging them.



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Re: PMI - a different question
Posted by: thermarest
Date: January 09, 2015 09:53AM
Thanks everyone. That's 3 votes for persistence. Everything has changed since the 90s but I'm going to give it a shot.
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Re: PMI - a different question
Posted by: Lux Interior
Date: January 09, 2015 12:02PM
Quote
Rick-o
I was doubling the payment each month

Wow. How many months can you keep that up?
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Re: PMI - a different question
Posted by: TLB
Date: January 09, 2015 12:28PM
Quote
Lux Interior
Quote
Rick-o
I was doubling the payment each month

Wow. How many months can you keep that up?
If I could afford this I'd have had my place paid off in 7-8 months.
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Re: PMI - a different question
Posted by: Rick-o
Date: January 09, 2015 01:25PM
Quote
TLB
Quote
Lux Interior
Quote
Rick-o
I was doubling the payment each month

Wow. How many months can you keep that up?
If I could afford this I'd have had my place paid off in 7-8 months.

Heh! That doesn't look right, does it?

How about, I made a double payment each month. Better? surrender



Mr. Lahey: A lot of people, don’t know how to drink. They drink against the grain of the liquor. And when you drink against the grain of the liquor? You lose.

Randy: What the @#$%& are you talking about?
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