How can I get the PMI / MIP removed from my mortgage payment?

Question

We've had our home for almost 2 years now and we still owe roughly $246,000.....how much would we need our house appraised for to get this small monthly fee removed?
Thanks in advance!!

Answer 1

You have to have at 20% equity in your home. Any loan value oof more that 80% requires PMI. After that it is a simple matter of writing to your mortgage company and telling them that you want it removed.

You either have the original sell price to judge the 80% or you have to have a new appraisle from an appraiser approved by your lender. I woyuld say you senond has a better shot even though it will cost you some money up front. The amount you pay on principle inthe first severalyears is almost nothing.

Answer 2

The investor under whose guidelines the loan was underwritten required the mortgage insurance because you put down less than 20% of the sales price as a down payment. In order to remove the requirement the lender must confirm that you have at least that much in equity. Most servicers will require at least 25% in equity (the additional 5% protects them from investor default in case property values decline and you subsequently default on your payments). The entity to whom you remit your payments can give you their procedures for contesting the PMI. In most cases, an appraisal of the property will be required. They may require you use one of their approved appraisers. That cost will run you somewhere between $400 - $500 depending on the market costs in your area. In addition, you must have maintained your loan payments in an as agreed manner.

This may not be necessary as Congress enacted a law a few years back that requires lenders remove PMI after a specified period of time. Your servicer can explain that to you.

In addition, this year your PMI payments become tax deductible, that may be a good thing as it can decrease your taxable income.

Answer 3

There is a difference btw PMI (private mortgage insurance) and MIP (monthly interest payment). To get PMI removed, you need to show equity yielding a conforming loan to value. You can either get the property re-appraised or pay down the loan.....

Answer 4

What a great question, and I'm glad that I can answer it. You have to have a certain amount of equity in your home with good mortgage payment history. I think its 5 years, but it also depends on the bank. 2 years isn't enough time.

Call the bank and ask them, they have to give you an answer, & the answer isn't you can't. Don't let them fool you into thinking otherwise.