Do You Pay PMI?

[FUNKMAN]

FYI:

I was speaking with a co-worker this week. He is having financial difficulties and has been getting assistance from another co-worker who I believe has his CPA.
The co-worker having financial trouble told me that he was able to call his Bank that lent him the money to buy his home and have them stop his PMI payments.
From what i understand if you put down less than 20% on your home mortgage then they make you pay PMI. PMI is actually an Insurance Policy that the bank has with an Insurance company that covers their butt if you default on your mortgage.
At the time you buy your home it seems as if it is something that's mandatory but my co-worker says it is not. He was able to stop the PMI payments and all of his prior payments became retroactive and were put in escrow or towards future mortgage payments.

The Bank gave him a hard time on the phone but had to give in.





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[East Side Dave]

I don't know about PMI but I can fit three gob-stoppers in one nostril.

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Big Ass Mafia

[KC2OSO]

I did the same thing after about a year of owning a house and making the payments on time. Just threaten to take your mortgage elsewhere and they change their tune pretty quick. $200 a month back in my pocket.

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[JustJon]

I don't know about PMI but I can fit three gob-stoppers in one nostril.
I'd pay to see this after watching you snort ketchup

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[Ralphy Ramone]

Your friend is pretty smart.Usually the bank won't allow you to drop the p..m.i until you 've accumulated at least 20% equity(because you did'nt have it when the loan originated).That could take years being that your monthly nut is 99.999999% interest from day one of the mortgage.

As someone just posted above me(sorry I didn't catch the member's name) said ,threaten those banking bastards that you'll refinance at the bank or mortgage co. down the street.

Don't be afraid to speak up...they are just a bunch of whoo-ers!
(present RnF board members excluded)...they would be really cool whoo-ers!

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It's T.V.'s fault I am this way.

[Alice S. Fuzzybutt]

I'm lucky-- I put down more than 20% so I didn't need to pay the PMI.

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thank you dcpete!

I'm a big wheel down at the cracker factory.

[walking joint]

i'm paying a PMI. i've been here for about a year and a half. i know i can get rid of it if i just got my house appraised, but that would be a bunch of upfront money to get it done. i just refinanced and saved myself $300 a month...yeah for me. i'll pay someone $300 to act as me and get rid of my PMI over the phone...i just don't have the energy to do it myself.

[KCfromDC]

Is the 20% a NY/NJ thing? In VA you only have to pay PMI for less than 5% down payment. I bought my house in Febuary with an 80/15/5 loan, and eliminated the PMI.

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[FUNKMAN]

Is the 20% a NY/NJ thing? In VA you only have to pay PMI for less than 5% down payment. I bought my house in Febuary with an 80/15/5 loan, and eliminated the PMI.



not sure, I know it's been in existence in NJ for at least 17 years... I've never had to pay it but learned of it when buying homes...

It could very well be different from state to state. Other stuff differs, from what i understand in West Virginia once you pay your home off you do not pay any more real estate taxes. I have relatives their who are elderly and that's what I was told.

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[jratt]

$200 a month back in my pocket.


dam i only pay $45 a month but we are selling and buying a new townhouse are mortage guy told us he can split the mortage so what ever you put down makes it the 20% so if you have 100,000.00 house but only 10,000.00 to put down he would split the mortage to two amounts for 50,000.00 each this sounds good but for some reason i just dont feel good about it. has anyone ever heard of this

jratt AKA johnbravo
...im a big black dude with a cool car. I go by the name "nigger". dont be shy.

as for people wishing they were you...

Nobody wishes they were a mistake.

[wilee]

I'm paying ~$31 a month PMI. The PMI isn't the biggest nut in the mortgage, (although it is still some drinking money, especially a $200 PMI payment!) You can try negotiations with the bank as others have suggested, but they aren't obligated to remove it unless you have enough equity in the home.

If you've lived in your home for several years and never had a late payment, they'll be more likely to OK it, since it's apparent you're not likely to skip town (and skip out on the mortgage).

I have to look into refinancing myself. I could probably get another 1-1.5% difference in my rate.

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[KCfromDC]

so if you have 100,000.00 house but only 10,000.00 to put down he would split the mortage to two amounts for 50,000.00 each this sounds good but for some reason i just dont feel good about it. has anyone ever heard of this

That's what I did. We put 5% down, and got two mortages, one for 80% of the total cost, and one for 15%. The only thing that you have to be aware/careful of is that the interest rates differ significantly. We got 5.25% on our principle, and 7% on our second. When you average them out, its just over 6%, which is pretty competitive around here. The good part is that the 15% loan is only like 30K, so we can probably pay it off completely in a few years.

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