by Guest » Sun Apr 19, 2009 03:13 am
Hi:
I am a home buyer in the market for a short sale/foreclosure. As in 99% of the cases, getting a home through a short sale/foreclosure typically means you will have some sort of 'automatic' equity in the home. That being the case, can I get an appraisal after I purchase a home and if the appraisal comes back that shows, along with my downpayment, I am below the 80% or even 75% threshold for PMI, I can get rid of PMI? I've had three lenders say, "No...you must fulfill a 2 year period of having PMI." while another lender said, "yes...we deal with two PMI companies that don't have a seasonal length of time required to cancel." Is that true???
I am a home buyer in the market for a short sale/foreclosure. As in 99% of the cases, getting a home through a short sale/foreclosure typically means you will have some sort of 'automatic' equity in the home. That being the case, can I get an appraisal after I purchase a home and if the appraisal comes back that shows, along with my downpayment, I am below the 80% or even 75% threshold for PMI, I can get rid of PMI? I've had three lenders say, "No...you must fulfill a 2 year period of having PMI." while another lender said, "yes...we deal with two PMI companies that don't have a seasonal length of time required to cancel." Is that true???
Posted: Wed May 06, 2009 08:43 am Post Subject:
@ GNP
Well about the PMI to be dropped all you need to is a minimum balance of 78% on your principal amout.
Some of them would have the limit set to 80% depending on company to company.
And it dosnt have any time limit.. you can pay more than your TAT mthly paynt and pay if off earlier...
there is no such time limit.
Aad adding to the above PMI protects Lenders investors from financial loss if a borrower does not repay a loan. It also benefits the borrower in that many lenders require a lower down payment when a loan is covered by mortgage insurance than if it were not.. Most of the times the PMI is reomoved by the Lender when they are sure that they are not at any kind of undue risk and that is how they have this criteria of 78%-80%
@ GNp if you still need more clarification on PMI please feel free to ask..
I have been working with a sub prime lender and can help you with any questions you have anout Mortgage.
Thanks
(DJ, you had three separate posts a few minutes apart, I combined them all into this one-thanks lori)
Posted: Thu Nov 25, 2010 06:25 pm Post Subject: PMI
I was under the impression that PMI insurance could be dropped irrigardless of the equity if you made all your payments on time for two years. Is that false?
Posted: Sat Nov 27, 2010 11:58 pm Post Subject:
Irregardless of the fact that there is no such word as irregardless, making payments for two years has nothing to do with terminating PMI coverage on a mortgage. Your property value (equity) compared to your outstanding mortgage determines whether it can be terminated or not. You must be at or below the 80% LTV mark, and you must provide an appraisal at your expense, performed by one of your lender's approved appraisers.
Posted: Fri Oct 09, 2015 12:05 am Post Subject: PMI
BB&T is telling me that no matter how much money I give them they won't drop the PMI unless I've had the loan for at least 24 months. (the PMI Disclosure requires no late payments in the last 24 months. But nowhere does it say I must have had a loan for 24 months). I don't want to send them a huge check unless I have some reassurance that they will drop the PMI when I request it, and they are saying they won't.
I guess I need to hire a lawyer now.....NOT happy with BB & T mortgage company
Posted: Sat Oct 10, 2015 12:40 am Post Subject:
This has nothing to do with insurance and you are reviving a 5 year old thread. Review the mortgage laws on this matter. They can be found with an inline Internet search. Of you can pay an attorney a few thousand dollars to do the search for you.
Add your comment