Mortgage Insurance

I know there are a couple of mortgage people on here. I'd like to pick their brains for a second.

I am still paying PMI after living in my house for 9 years. The loan is currently about $12k above a zillow price estimate and houses around mine are selling for about those estimates. I have never missed a payment and have excellent credit. Most mortgage companies say the loan needs to be down to 80% of the home's value before i can remove PMI.

Is there anything I can do? Thanks!

I'm not a mortgage person, but I believe you can get an appraisal done via your mortgage holder to verify the loan/value ratio. Then yes, they will remove the PMI.

Most mortgages will remove it automatically I believe at ~78% of original loaned amount payoff if you don't request it otherwise.

Yeah, re-appraise. PMI is a super major screw job. It is not insurance for you, it is insurance for your lender in case you stop paying. And it doesn't pay them either (see 2008.) So, it is money to an "insurance" company that pays no one.

If the current loan balance is $12k over the appraised value, then no, you've still got a long way to go.

Also, contact your lender and ask them, because some of them have little clauses in there that you can't get out of PMI ever, because, like, they make money selling that E36 M3 to you.

When the loan balance falls below 80% of the appraised value, you can move to get the PMI off your payment.

Hey there, mortgage guy here. First thing to know is that there is a federal law which sets the criteria for cancellation of the mortgage insurance. Here's a good summary of the law which also addresses most of your questions:

http://www.consumerfinance.gov/askcfpb/202/when-can-i-cancel-my-private-mortgage-insurance-pmi.html

Best first step is to call your lender's customer service number that is on your statements and request that the mortgage insurance be cancelled. In most cases, this triggers them to send you a letter which lays out the requirements to cancel the PMI. It may give you the option to pay down $x to cancel now, along with the details on how to order a valuation of your home to determine if you now have sufficient equity. The values on Zillow are not reliable as they do not take into account condition or updates of your house or the comparable sales in your neighborhood.

Good luck!

DILYSI Dave wrote: If the current loan balance is $12k over the appraised value, then no, you've still got a long way to go.

Nobody is doing 80/20's anymore or even 5/95 if you have 15% equity. Upside down on a loan there really is no way around PMI.

Thanks for the info everyone. Unfortunately, it is what I was afraid of. I did contact them anyway to see what they say.

wearymicrobe wrote: Nobody is doing 80/20's anymore or even 5/95 if you have 15% equity. Upside down on a loan there really is no way around PMI.

My wife and I managed to get PMI off an upside down loan as there was a clause in there that it would drop off once a certain fraction of the principle was paid off. Like Peter said, your best bet is to call the bank and ask.