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PMI question

I have been paying mortgage insurance for 20 months, and our credit has improved. We owe approximately 380k and the house is worth 415k according to recent sales in the neighborhood. How is the best way to get out of PMI? by bestfx99692 from Boise, Idaho. Feb 24th 2016 Reply


Mandi Feely (mandifeely)
#22 ranked lender in Idaho - 2 contributions

Hi There,This is Mandi Feely from Premier Mortgage Resources 208-629-0176. Based on a value of 415k and a loan amount of 380k you are at approx. 90% loan to value. Mortgage insurance is required on all loans greater than 80% loan to value but I do have a few suggestions on how to avoid the monthly expense. We can finance the MI which is less expensive typically that monthly MI, we can do a lender paid MI option where we pay the MI but the rate is slightly higher. The other option would be to refinance into a 1st mortgage at 80% LTV and a second mortgage for 10% LTV. Then once you pay off the 2nd mortgage you only have the first mortgage. If you want me to start a loan for you, you can call me, email me at mandi@pmrloans.com or go online to www.mandifeely.com. Thank you for the opportunity to earn your business.Mandi~

Feb 24th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

First I would suggest that if anyone on the loan is a Veteran, then you refinance into a VA loan (you must be VA eligible).. If that's not the case, then in order to eliminate PMI, you have to be at 80% loan to value, and in your scenario, you would need to be financing around $332K to avoid paying MI.. There are other types of MI, but make no mistake, it's you paying.. What you have now is a borrower paid policy, and once you reach 20% equity, you can contact your existing lender and ask that it be removed.. you will have to pay for an appraisal, and so long as the value is there, then they will remove the MI and you wont have to refinanced to do it.. The other types of MI are called "single premium" which has both an upfront and financed option, and there's "lender paid" MI.. which is added to your interest rate.. But in either case, the policies are "non-refundable, non-cancelable".. so once you opt that route, it will be there in most instances, for the life of your loan.. The best thing to do would be to leave your loan alone, and wait till you have 20% equity.. right now you're close to 10% equity.. so within 3 years you should be at 20% or more.. 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 NMLS# 226347

Feb 24th 2016
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Mark Rodeghiero (markr@3rates.com)
#33 ranked lender in Idaho - 14 contributions

Howdy - This is a great question. As it appears you are not below the 80% loan to value mark to contest it away. The best option left is probably to refinance it away by utilizing one of our no MI mortgage programs, OR to utilize another means to pay down your first to the 78-80% loan to value range. Most loans require that MI stay on the loan for a set period of time (24+ months in some cases) which could be problematic. There are several variables like your current rate which may make a refinance less appealing. I would encourage you to give us a call. With a little more information we can dial in a good solution, or give you assurance that the track you are on is still a good one. - Regards - Mark Rodeghiero - Source Mortgage, Inc. (Idaho) NMLS 1871/32760 208-473-2925 markr@3rates.com

Feb 24th 2016
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Justin Murray (JustinMurray)
#102 ranked lender in Illinois - 172 contributions

I can do a loan for 80% and put the remaining balance on a 2nd mortgage for you - avoiding you having to pay the mortgage insurance. This is the quickest way without having to pay down the balance with assets or other funds. Thank you,Justin Murray / JMurray@WintrustMortgage.com / 312-256-4065

Feb 24th 2016
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Lorne Harvey (lorneharvey)
#1 ranked lender in Washington - 418 contributions

Please see the response by Mandi Feely. I would recommend that you give her a call, she is the best mortgage loan originator that I know.Thank you

Feb 25th 2016
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Jesse Stroup (jessestroup)
#195 ranked lender in California - 589 contributions

PMI will remain on your loan until 80% LTVIf you are interested in refinancing, you maybe able to finance the pmi into the new loan.

Feb 25th 2016
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