Refi to drop mortgage insurance?
![[Post New]](/jforum/templates/default/images/icon_minipost_new.gif){kind=icon}
Anonymous
|
In the past couple of months, we went from owning 18% of our home’s worth to 25%...which means we can refi and drop mortgage insurance of $100/month. The $1200/year would go straight to student loans, but honestly isn’t that much compared to how much we put against student loans all the time (dh is a doctor). Regardless of how big or little it is, we definitely don’t want to waste it on unecessary $100/month.
We are just not sure how long we’ll be in this home. Based on current job experience, dh might switch jobs. More likely just a commute, but possibly involves a move. I could see us selling in the next 6mo.. Or in two years... Or staying for another 6-8... We are first time homeowners, so I’m sorry if this is obvious to others..I just don’t know whether it’s appropriate to start contacting our lender + a couple others to start shopping for a refi. Advice? |
Anonymous
| I was able to apply to our mortgage company to drop the PMI early. We needed to do an appraisal and fill out a form. I think that was it. But if your loan to value is at 75% they should drop it automatically shouldn't they? |
Anonymous
| Don't refinance. Contact your lender and tell them you think you have enough equity to no longer need the insurance. If they push back, offer to pay for an appraisal. |
Anonymous
| It’s an fha loan, and when we took it on in 2015, I believe the rules were such that it can’t be simply dropped. |
Anonymous
Ok I will try that. Again, I think we can’t just drop...But you remind me that the lender sent something out last year about a simple refi process. I guess the point is they want you to stick with them and they have an easy refi. |
Anonymous
| I find it hard to believe your equity increased by almost 40% in the space of just a few months. You lender will probably be similarly skeptical. |
Anonymous
I dunno maybe longer than a few months. I checked it as some point, maybe as long as 6 months ago? And I knew we were just under 20%, and now I think our value jumped a little. |
Anonymous
OP, keep trying! We had PMI when we bought our house in 2014 and were told it would years to get rid of it. We kept calling around and were able to get rid of it in 2017. It’s possible! |
Anonymous
| What's your rate? Refi might be more expensive for you than paying PMI. Do the math first |
Anonymous
| Navy Federal has no PMI. |
Anonymous
Our rate is 4.25 |
Anonymous
|
Wow, this is timely. I was just sent an alert to review my escrow statement. As I was reviewing my account, (not statement), I noticed my FHA will expire August 1.
We purchased in 2015, and re-fied in 2016 in hopes of eliminating PMI, but no such luck. My wife's spending and credit are a shit-show. Here's hoping we can drop it. Our purchase price was $710, and we owe $555, so we're actually at having 22% equity/78% owing. I've had nothing but bad luck in 2018, so it probably always shows that it's expiring for some technical reason, I've never looked closely. |
Anonymous
Has your home’s value gone up? The purchase price at this point is irrelevant. |
Anonymous
True, good call. The short answer is yes, according to every single website out there, but does that matter? To the lender I mean. Or would an appraisal be required? I reached out to their chat window yesterday and they said as much. |
Anonymous
|
Bumping this.
We are in the same boat for the same reason -ight be moving and selling in few months or 3-5 years. Bought in 2016 and did an extensive Reno. Our rate is 3.5% |