Forgotten Your Password?

Need to Register?

Question Icon

Can I get rid of PMi by paying lump sum? Fannie loan

I know either way I need to get to 20% (?) equity to get rid of the PMI but is there any penalty for paying a lump sum to get there sooner? I'm at 85% LTV atm and happen to be in a position to front 5% in one go. Let me know if this is a more favorable option than refinancing as I do not want to pay more interest in the end either by donweiler42378417 from Athens, Ohio. Jul 21st 2014 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,986 contributions

Standard Fannie Mae and Freddie Mac loans allow you to ask to drop PMI once you have made at least 24 payments on the loan AND if you believe you are now under 80% loan to value based on a current appraisal. The loan will automatically drop PMI when you get to 78% loan to value based on payments only. www.Mortgage-Rochester.net

Jul 21st 2014
2
0
T.C. Strait (TCstrait)
#71 ranked lender in Ohio - 18 contributions

Like Joe said, If you are just making a lump sum payment to get the PMI to automatically fall off, you will need to get the balance on the loan down to 78% of the last appraised value. If you only get it to 80%, then you would need to request the lender to do a new appraisal (generally paid for by you).

Jul 21st 2014
1
0
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

Yes.. you can pay the additional funds down to get your loan to value below 80%. Under the PMI guidelines, you have to pay MI for at least 24 months since the policy was issued, so long as your past that mark, then once you get below 80% LTV, you can contact your lender and request the MI be removed.. they will require an appraisal, which you will have to pay, but you can absolutely pay down your mortgage to get to the required LTV to satisfy the lender..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Jul 21st 2014
1
0
Jennifer Sheil (findohioloan)
#75 ranked lender in Ohio - 5 contributions

I am a lender in Ohio, www.FindOhioLoan.com and can help you. There is no penalty. What is your current rate as you can do a NO cost refi if the house would appraise OR make a lump sum payment. Who is your investor? Jennifer Sheil 513-602-5498

Jul 22nd 2014
0
0
Subscribe to our news feed.