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Will getting loan mod thourgh HAMP get rid of PMI?

I'm behind and looking at hamp wondering if this will stop my PMI charges? by dayner1.lara765612 from Greenwich, New Jersey. Jan 6th 2015 Reply


Derick Condron (rightstartoregon)
#33 ranked lender in Oregon - 597 contributions

It is unlikely that the PMI is going to go away. They may rework your payment schedule for a short period to allow you to catch up.

Jan 6th 2015
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 7,802 contributions

HAMP is only offered through your existing lender.. PMI will not be removed on a modified loan.. When doing a HAMP loan, understand that over 90% of those successful in obtaining a modified loan are NOT happy with the new terms.. Understand that the guidelines are pretty cut and dry.. 31% of your household income for a mortgage payment.. example: You make $2000 a month, your wife makes $1000 and your Son makes $800. Total HOUSEHOLD income is $3800 X 31%= $1,178. If your monthly payment is lower than that amount, you will not be approved for a modified loan.. if your payment is higher than that, then your payment will be reduced to that number. How they modify your loan is also important to note.. first they will extend the terms, ( 30 years to 40).. then they will lower interest rate, and it's even possible you might see some principal reduction.. It could be modified in many different ways, but these are just a few... 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

Jan 6th 2015
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Jason Vondrak (jvondrak)
#1 ranked lender in California - 1,690 contributions

It's likely you will not be able to remove PMI through HAMP. It is unlikely that your lender will remove PMI if they are doing a loan modification.

Jan 6th 2015
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Dave Metsker (DaveMetsker)
#38 ranked lender in Oregon - 2,317 contributions

No, sorry, but payments may be lower.

Jan 6th 2015
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Carlos Figueira (carlosfigueira)
#108 ranked lender in New Jersey - 198 contributions

PMI is not going to be removed thru a HAMP loan mod.

Jan 6th 2015
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