getting rid of PMI on mortgage

[Grape]

Thats about what closing would cost, maybe check around for a refi, unless this is a new loan. If so, disregaurd

[BP]

The only way you can get around true PMI is to take TAMI (Tax Advantedge Mortgage Insurance). You will take a slightly higher rate (for the life of the loan), but will not be subjected to monthly PMI.

What about having two mortgages? Not sure if it's legal or not but I know someone that did this to get around a PMI.

[AdamLX]

What about having two mortgages? Not sure if it's legal or not but I know someone that did this to get around a PMI.

You might be able to still do 80/10/10 where it's 1st mortgage/2nd mortgage/downpayment and that will let you avoid PMI as well since you are capping your first at 80%.

The typical 80/20 (no downpayment) is gone from what I know and you can sometimes find am 80/15/5 I think. SVT Lurch would probably know as he's at a broker shop I believe so he would know more banks than I do.

[hunt4m3x]

First problem. You should of already had 20% down before you bought a house.

[Memo]

First problem. You should of already had 20% down before you bought a house.

Not all of us are DFW billionaires here

[Memo]

What about having two mortgages? Not sure if it's legal or not but I know someone that did this to get around a PMI.

I don't think banks do this anymore. Back then they did 80/20 loans

[Memo]

Have you heard this from your current lender or are you basing this off the usual requirements?

I ask because there can be a lot of red tape in getting it removed. You may be able to reach 78% based on original value, but the majority of lenders will require a new appraisal (lender ordered) to verify the current LTV in order to have the PMI removed.

The appraisal situation in this market is what is causing issues with getting PMI removed.

Yeah I talked to them already. I was going to do it earlier but they told me that I had to be in the house for 5 years first anyway.

[AdamLX]

Yeah I talked to them already. I was going to do it earlier but they told me that I had to be in the house for 5 years first anyway.

Curious, FHA loan?

[Memo]

Curious, FHA loan?

Yup. I was 23 when I bought the house so that's the best route I had...

[AdamLX]

Yup. I was 23 when I bought the house so that's the best route I had...

FHA are great loans for purchases (well before they double their PMI rate). I figured FHA since they told you five years.

[BP]

Curious, FHA loan?

Mine is also an FHA. The PMI is only like $35 a month though, vs $125 I had with a conventional.

[AdamLX]

Mine is also an FHA. The PMI is only like $35 a month though, vs $125 I had with a conventional.

Your PMI on that same FHA loan would be almost $80 these days. FHA finally caught on and now they are about even with conventional mortgages when it comes to PMI cost.

[Woods Racing Transmission]

PMI is a joke and it really sucks. I just tried to Refi my loan from 6.25 down to 4.75. My loan is currently a conventional loan with a local bank and does not have PMI. Yes my P&I was going to go down a little over 200 bucks but I was going to gain a 118 PMI payment for around 7 years. I told the loan officer no deal, he was like why your gona save over 200 a month. I said yes but I am giving it back to some insurance company that I get no benefit from and I am adding 3 more years to my note. No thanks.

[94form2000z]

my P&I was going to go down a little over 200 bucks but I was going to gain a 118 PMI payment for around 7 years. I told the loan officer no deal, he was like why your gona save over 200 a month. I said yes but I am giving it back to some insurance company that I get no benefit from and I am adding 3 more years to my note. No thanks.

Yeah that is a crock. I'd of told him to piss off as well.

[Rlhay2]

Paying $6K to save $500/yr is not a wise move unless you anticipate paying PMI for 10+ years.

The extra funds are better spent paying down the principle.
1 extra payment per year knocks 4-7 years off the backside of 30 yr loan.

and I am adding 3 more years to my note. No thanks.

If you've an adequate credit rating you can dictate the length of the loan.
When I refinanced my house, I thought a 15 year note was too aggressive.
Did not want to refinance for another 30, so we settled on a 20 yr refinance.

I cashed out some equity, lowered my payment and shortened my loan: a win, win, win!