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Can i refi to remove PMI before ive hit the 20% equity mark?

I'm at 85% LTV can i do a refi and remove PMI or is it too soon? my credit is 731 so i'm not worried about that. please let me kow by jamesartiaga78423976 from Brooklyn, New York. Jul 25th 2014 Reply


Scott Singer (ssinger)
#0 ranked lender in New Jersey - 28 contributions

Hi James. How do you know what your LTV is? Was an appraisal done? If at an 85 LTV you need to wait until you are at 80 or below. Values are up the past few years so your LTV might be lower than you think. Reach out anytime with questions.Scott Singer-Millenium Home Mortgage 908-303-1367

Jul 25th 2014
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Jason Vondrak (jvondrak)
#0 ranked lender in California - 1,741 contributions

You might be able to refinance to eliminate PMI, depending on the current market value of your home. A lender will be able to look at comparable sales in the ares and give you a better idea as to what your current value might be. Then if you choose to refinance, an appraisal will have to be completed to verify the value of the home and that you are not above 80% LTV.

Jul 25th 2014
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William J Acres (William_Acres)
#0 ranked lender in Arizona - 8,722 contributions

If your existing loan is a conventional loan, then you must have a minimum of 20% equity and have paid MI for a minimum of 24 months before a lender would consider removing the MI.. the lender will require an appraisal on the property, but understand it's not based on your original loan amount, it's based on your CURRENT valuation. If you have an interest rate comparable to what is currently available, then it makes no sense to refinance just to try to eliminate PMI since there will be more costs involved. By contacting your lender, all you have to do is pay for an appraisal, and if the value is there and the loan is over 2 years old, then they will remove it without refinancing.. 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 25th 2014
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Steven Ceceri (CreativeFinancingOptionsGroup)
#0 ranked lender in Massachusetts - 723 contributions

Hi James! You can consider a few options, but do be sure to first call your lender to find out exactly what your loan balance must be to have PMI removed. 1) Knowing the required loan balance, you can pay the necessary amount down on your mortgage with a Cash Payment towards Principal Only and then have the lender remove PMI. 2) Apply for an Equity Line / Home Equity Loan, which should allow up to a 90% Combined Loan To Value (CLTV) and use those funds to pay down on your 1st Mortgage, thus getting to the required loan balance to remove PMI. Your Equity Line should be at a much lower interest rate, but make sure you have a plan to get that paid off too by using the savings from the PMI removal. These would be the best 2 Options to consider! Please let me know how you make out! Enjoy the day!

Jul 26th 2014
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