YIPPEE! More money for fabric!!!
05-05-2010, 06:00 AM
#1
Super Member
Thread Starter
Join Date: May 2009
Location: La Pine Oregon, USA
Posts: 5,907
I'm posting this just to let others know what I found out.
We purchased our home 5 yrs ago and put only 5% down. (we opted to save the rest for fixing up the house - BOY, was it needed!). We discovered at closing that they added an extra $90.00 for PMI !!! That's the insurance that guarantees to the lender that we'll make the mortgage payments!!! It is not a mortgage insurance in the normal sense. To say I was not amused was putting it mildly. Anyway, I read in a magazine the other day that when your home mortgage is 75% of value, you can have that taken off!!!! So, okay - is that the value of the home when I bought it or the value today???? BIG difference, unfortunately!
So yesterday, I called the mortgage company, B of A, and lo and behold the man said it was 75% of the PURCHASE PRICE and he'll put in a request for the insurance to be dropped!!!! YAY!!! $100. for more fabric..............oh yeah, DH will want part of that....shoot. Oh, well, $50.00 for fabric!!!!
note: apparently if the value of your house has gone up, it's 70%, etc.....so you need to look into it if you have pmi on your home!
We purchased our home 5 yrs ago and put only 5% down. (we opted to save the rest for fixing up the house - BOY, was it needed!). We discovered at closing that they added an extra $90.00 for PMI !!! That's the insurance that guarantees to the lender that we'll make the mortgage payments!!! It is not a mortgage insurance in the normal sense. To say I was not amused was putting it mildly. Anyway, I read in a magazine the other day that when your home mortgage is 75% of value, you can have that taken off!!!! So, okay - is that the value of the home when I bought it or the value today???? BIG difference, unfortunately!
So yesterday, I called the mortgage company, B of A, and lo and behold the man said it was 75% of the PURCHASE PRICE and he'll put in a request for the insurance to be dropped!!!! YAY!!! $100. for more fabric..............oh yeah, DH will want part of that....shoot. Oh, well, $50.00 for fabric!!!!
note: apparently if the value of your house has gone up, it's 70%, etc.....so you need to look into it if you have pmi on your home!
05-05-2010, 06:24 AM
#3
Super Member
Join Date: Mar 2010
Location: North Carolina
Posts: 2,375
Yeah, PMI 'insurance' really just makes you pay for others that default on their home. It has always chapped my heiny that it exists. We got that off our mortgage ASAP when we bought our first home.
Yay for more fabric $$!
Yay for more fabric $$!
05-05-2010, 06:38 AM
#4
Super Member
Join Date: Feb 2009
Location: la la land
Posts: 2,173
Oh my goodness!!! In the early eighties when the economy fell. Everyone lost their jobs! Here in Alalska we feel the impact about 3 years after everyone else does. Any way we had PMI and didn't even know what it was. In fact we had 2 PMI's. LONG story short PMI saved our home. Everyone we knew lost their home but us. We just keps shaking our heads in disbelief that our home was saved. They paid 8 months of house payments for us. We looked at that as a miracle!!! And we paid it all back!
05-05-2010, 06:41 AM
#5
Banned
Join Date: May 2009
Location: LA - Lower Alabama
Posts: 888
Just called DD to see if they had that (I kinda remember her mentioning something like that) - yes they did, and they had already had it taken off - here's the thing - you DO have to call the mortgage company, they won't automatically take it off..
05-05-2010, 07:26 AM
#6
Super Member
Thread Starter
Join Date: May 2009
Location: La Pine Oregon, USA
Posts: 5,907
I was just reading another website that said if you buy your home after 1999, then they've passed a law that REQUIRES either the mortgage company or the homeowner to take it off. I'll bet there are ways they'll get around that one!!!
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