Private Mortgage Insurance

[Jonesy]

Hey Rebels, 
 
I wanted to see if anyone has had a home loan through Wells Fargo and gone through the process to get your PMI removed. I just want to know what I'm getting into, any tips or advice would be welcomed. 

 

Thanks

[perrch01]

Not with Wells Fargo but made an attempt recently with seterus and it did not go well. The comps in the area hurt us because no one is buying big older homes right now. Next time we will get some real estate agents to give us their thoughts first.

We refinanced under harp which dropped our payment 300 a month BUT they appraised our house site-unseen for 90k less than its last appraisal and 63k than what we payed for it effectively extending our PMI an extra twelve years

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[Jonesy]

Thank you for the info Perrch. 

 

My PMI is pretty low at only $45 but having that extra cash on hand each month would be nice. I'll have to email the Realtor I worked with when I originally bought my townhouse and ask him how homes in my area are selling. Good idea! I know my neighbor, the townhouse next to mine sold for $25k more than mine did 2 years ago. That conversation got me thinking about my own home and payments and potentially eliminating my PMI. 

I don't want to refinance because that would make my Mortgage Certificate credit null and void and I enjoy that extra money back at Tax time.  

[SuperVillain]

Hey there, I know this is a little late. I work as a mortgage Loan Office and previously worked for a major competitor of Wells Fargo. There are two ways Mortgage insurance gets removed, either you getting an appraisal to confirm that home values in your area have increased and it is deemed that the Loan to Value (LTV) ration is less than either 80% OR that your Loan amount gets below 78% of the Original value. In the later case, you can technically  petition to have the PMI removed when the LTV goes below 80%, but most of the major banks and lenders will not approve this.

 

If it is a situation where you are hoping to having the PMI removed due to home values increasing, realize that you will have to pay for the appraisal. With your PMI at $45 a month, realize that even if you get the approval, you are looking at 9 months to break even before you see benfit, so you would have to weight that out. Judging that you are still in the MCC period, it looks like it COULD be beneficial. If you gave me slightly better idea of you current situation, I could to a EV calculation for you.

 

Also, are you certain that a refi would nullify the MCC? You usually have to go through with a reissue, technically making it null and void, but I don't believe that it would make you ineligible for the program. Is Wells telling you that?

 

Any other questions, feel free to hit me up.

[SuperVillain]

We refinanced under harp which dropped our payment 300 a month BUT they appraised our house site-unseen for 90k less than its last appraisal and 63k than what we payed for it effectively extending our PMI an extra twelve years

 

As I state  in the last reply, you should be able to have the PMI dropped once home values have rebounded. You will have to pay for the appraisal out of pocket, but being that interest rates have been around all time lows the last couple years, you still likely improved your financial position a good bit, if that makes you feel any better.