Did P&I insurance requirements really drop this year?

[Frank]

Lately I have been getting calls with companies telling me PMI insurance requirements have gone down and I am just wondering if that is true, or are they just going by the amount of time I have been in the home? I have only been here 3 years.

If they have gone down, how do you go about eliminating or reducing it?

I fully expect the ballers to join in bragging about their 50% down or paid cash.

[BlackGT]

Interested to hear more on this as well!

[Big A]

Perhaps you've paid enough principal to meet requirements to lower PMI. I'm only aware of the 10% figure to have it removed, but perhaps your lender has a schedule for reducing it as well.

[Binky]

PMI is 80% equity before you can have it removed.

Are you talking PMI (standard loan) or MIP (FHA/Govt loan)?

[Ruffdaddy]

10% down pmi is less than 5% down pmi. Maybe it's an equity thing. If you refinance the same house but the equity is now equal to a greater percent down...then you require less pmi.

I believe you can also buy pmi out if you have a few grand sitting around.

[Ruffdaddy]

PMI is 80% equity before you can have it removed.

Are you talking PMI (standard loan) or MIP (FHA/Govt loan)?

20% equity...

[The King]

^^^^^
Truth

[Big A]

That's right, 20%, I suppose I was being optimistic for myself. It's all a money grab anyway, is paying a few hundred dollars more a month really going to ensure that I don't default on my loan? I'd really like to know the logic behind it, beyond being an excuse to make more money.

[bcoop]

Call your lender. It's always worth checking to see if you can drop PMI. But it's usually a pain in the ass, and could require a new appraisal which you get to pay for.

[mstng86]

That's right, 20%, I suppose I was being optimistic for myself. It's all a money grab anyway, is paying a few hundred dollars more a month really going to ensure that I don't default on my loan? I'd really like to know the logic behind it, beyond being an excuse to make more money.

Its covering the lenders ass. That's all it is doing.

[Ruffdaddy]

That's right, 20%, I suppose I was being optimistic for myself. It's all a money grab anyway, is paying a few hundred dollars more a month really going to ensure that I don't default on my loan? I'd really like to know the logic behind it, beyond being an excuse to make more money.

And even more bullshit is that you pay insurance that you can never benefit from. If shit hits the fan and you foreclose, that insurance never covers you. It only saves the bank. Wtf mate?

[mstng86]

And even more bullshit is that you pay insurance that you can never benefit from. If shit hits the fan and you foreclose, that insurance never covers you. It only saves the bank. Wtf mate?

here here ole chap

[bcoop]

That's right, 20%, I suppose I was being optimistic for myself. It's all a money grab anyway, is paying a few hundred dollars more a month really going to ensure that I don't default on my loan? I'd really like to know the logic behind it, beyond being an excuse to make more money.

Though PMI is required by lenders When putting less than 20% down, the lender has to purchase that PMI through third parties. My sister sells PMI to lenders.

[Pro88LX]

FHA cut MIP premiums significantly. That with lower rates should be a good savings if you can do an FHA streamline refi. I work on the conventional sidew and there is no change on PMI

[Big A]

Though PMI is required by lenders When putting less than 20% down, the lender has to purchase that PMI through third parties. My sister sells PMI to lenders.

Tell your sister to cut it out...