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#1
02-08-2007, 11:51 AM
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Re: Ask Anything About Mortgages
My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around?
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#2
02-08-2007, 03:23 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around? [/ QUOTE ] this is pretty standard... my bank charges $380 for removal of PMI... it covers the admin costs and the cost to "re-certify" your appriasl in order to ensure the house is still holding value. PS... don't forget to ask your tax man if you can write off that PMI, laws changed recently on the tax deductability of PMI
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#3
02-08-2007, 04:16 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
[ QUOTE ] My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around? [/ QUOTE ] this is pretty standard... my bank charges $380 for removal of PMI... it covers the admin costs and the cost to "re-certify" your appriasl in order to ensure the house is still holding value. PS... don't forget to ask your tax man if you can write off that PMI, laws changed recently on the tax deductability of PMI [/ QUOTE ] started 1/1/07, so only ongoing.... BB, I had always just done combos since they seemed to work out better than doing MI or even LPMI with the tax benefits...have you looked into doing more MI product now that it's tax deductable? Thanks.
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#4
02-08-2007, 10:08 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
[ QUOTE ] [ QUOTE ] My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around? [/ QUOTE ] this is pretty standard... my bank charges $380 for removal of PMI... it covers the admin costs and the cost to "re-certify" your appriasl in order to ensure the house is still holding value. PS... don't forget to ask your tax man if you can write off that PMI, laws changed recently on the tax deductability of PMI [/ QUOTE ] started 1/1/07, so only ongoing.... BB, I had always just done combos since they seemed to work out better than doing MI or even LPMI with the tax benefits...have you looked into doing more MI product now that it's tax deductable? Thanks. [/ QUOTE ] I would, but the rates on the 80/20 programs are still really good.. getting most of my clients 7.99 fixed for 5 years on the 2nd.. that PMI still isn't making sense just yet. Where this new tax law may be good is for my Non-owner-occupied borrowers who want to do 95% financing.
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#5
02-08-2007, 10:10 PM
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Re: Ask Anything About Mortgages
BTW... I don't know if this is true or not... but if you refi, you might be able to write off PMI retro-actively, kind of like when you pay points on a refi... talk to your tax guy. Personally this sounds to good to be true... but I guess anythings possible.
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#6
02-08-2007, 10:13 PM
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Re: Ask Anything About Mortgages
PS... did you guys know that the #1 missed tax deduction in America is NOT writing off the total cost of previous refinances (including prepayment penalties) in the year that you do your new refi?
Example. Bought a house in 1999 and paid $5K in closing costs. On a purchase, closing costs are tax deductable in the year you bought the house. Now, in 2002 you refi for a lower rate and pay $7,000.00 in points and closing costs. These costs are required to be pro-rated over the 30 year term of the loan. If you were to refi again in 2006... you get to write-off the remainder of the $7,000.00 in fees you paid back in 2002... It's HUGE tax write off that lots of people miss, especially if you've changed your tax man since your last refi. Check it out.
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#7
02-08-2007, 04:17 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around? [/ QUOTE ] Standard. Don't you pay more than that in MI? They aren't going to waive the requirement, so you seem to be cutting your nose to spite your face.
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#8
02-08-2007, 04:55 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
[ QUOTE ] My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around? [/ QUOTE ] Standard. Don't you pay more than that in MI? They aren't going to waive the requirement, so you seem to be cutting your nose to spite your face. [/ QUOTE ] why is this standard? the LTV is <80%, what the hell does he need an opinion on that for? fwiw, my pmi is a measly $29/month, i'm gonna be pssed if my bank tries to charge me money to take it off when it is SUPPOSED to come off according to the original loan agreement
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#9
02-08-2007, 05:38 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
[ QUOTE ] [ QUOTE ] My mortgage has PMI on it, I paid the loan down to where I have 78% loan to value from the original agreement. My understanding is that this was to come off automatically at 78% but now they want a Brokers Price Opinion costing me $115 which I don't want to do just because of the cost. Is this required or are they just jerking me around? [/ QUOTE ] Standard. Don't you pay more than that in MI? They aren't going to waive the requirement, so you seem to be cutting your nose to spite your face. [/ QUOTE ] why is this standard? the LTV is <80%, what the hell does he need an opinion on that for? fwiw, my pmi is a measly $29/month, i'm gonna be pssed if my bank tries to charge me money to take it off when it is SUPPOSED to come off according to the original loan agreement [/ QUOTE ] I'm sure if you read your original loan agreement, you will see that they need an opinion of value to make sure that the property's value hasn't declined.
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#10
02-08-2007, 06:06 PM
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Re: Ask Anything About Mortgages
[ QUOTE ]
I'm sure if you read your original loan agreement, you will see that they need an opinion of value to make sure that the property's value hasn't declined. [/ QUOTE ] I'll check this when I get home. Kind of crooked if you ask me. An appraisal will cost the equivalent of over a year of PMI in my case. Why does it matter if the home value went down? Do they introduce some kind of loan amount to appraised value ratio? Thanks for all your advice in these mortgage threads Sossman and Bicycles. I've learned a lot.
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