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If I am slightly underwater (.05%) and paying PMI ($164 monthly)...what can I do to get out from under PMI?

by roybryant516 from California, Maryland. Sep 4th 2014 Reply


Anthea Emerson (AntheaC2)
#215 ranked lender in Florida - 57 contributions

Refinance and pay the difference. You have to owe at least 125% above what your house is worth in order to refinance with the HARP program.

Sep 4th 2014
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Scott Kinne (Skinne)
#1 ranked lender in Virginia - 68 contributions

The HARP program does not help you if you are already paying MI. It is only beneficial if you weren't paying MI on your current loan. If, through depreciation of your house you now sit between 81% - 125% LTV as the program, the program allows you to refinance without requiring MI on the new loan.Your only real option to eliminate MI now is to put money down to pay your loan balance down to 90 or 95% of your value, and obtain a new mortgage with Lender Paid MI where you don't pay it separately, but it's included in your new Interest Rate by raising the current market rate slightly. For example, if the market is at 4.25% now then you might get 4.625% with no MI. Pricing depends on your equity and Credit score! I hope this helps. Call me if you need to discuss further. Scott Kinne (NMLS# 182351) - First Heritage Mortgage (NMLS# 86548) - 703-293-6146.

Sep 5th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,055 contributions

You cannot get out of paying PMI until your at 80% loan to value.. you can pay your mortgage down, or wait till the value increases so you meet the 80% LTV.. Also, if you have VA benefits available to you, you can always refinance using VA, and there is no MI.. 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

Sep 5th 2014
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Phil Dumouchel (PhilDu)
#1 ranked lender in South Carolina - 2,228 contributions

Partly depends on the type of mortgage you have. In many cases once you reach 78% of the ORIGINAL value of the home (when you did the loan) the PMI will drop off. Otherwise, refinancing (only possible if the mortgage is HARP eligible, or FHA) won't help you but it might lower your overall payment and enable you to pay the mortgage down more quickly.

Sep 6th 2014
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