Ask Anything About Mortgages - Page 19

scotchnrocks · #**181** 02-08-2007, 09:13 PM

The amortization schedule provided by the bank (Suntrust) shows my PMI going away at LTV <78% and says nothing about an evaluation or any fees. From the sounds of it I guess they don't tell you that until you reach that point.

Would have been nice to know that beforehand. May have been easier to get a piggyback loan than have to go through this process. It'll be especially annoying if it costs me more in the end.

SlowHabit · #**182** 02-08-2007, 09:13 PM

Just wanted to add that this thread is awesome.

Bicycles_Biatch · #**183** 02-08-2007, 10:07 PM

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The amortization schedule provided by the bank (Suntrust) shows my PMI going away at LTV <78% and says nothing about an evaluation or any fees. From the sounds of it I guess they don't tell you that until you reach that point.

Would have been nice to know that beforehand. May have been easier to get a piggyback loan than have to go through this process. It'll be especially annoying if it costs me more in the end.

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If the original agreement doesn't say anything about having to get an updated valuation... then don't back down. Don't pay the bank a dime.

Bicycles_Biatch · #**184** 02-08-2007, 10:08 PM

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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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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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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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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.

Bicycles_Biatch · #**185** 02-08-2007, 10:10 PM

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.

Bicycles_Biatch · #**186** 02-08-2007, 10:13 PM

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.

Bicycles_Biatch · #**187** 02-08-2007, 10:14 PM

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Just wanted to add that this thread is awesome.

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Thanks... you should see my PM mailbox... really good Q & A going on.

Keep the posts and Q & A PM's coming... I'll respond as quickly as I can.

jzpiano · #**188** 02-08-2007, 11:05 PM

I'm going to be looking to buy a house in probably June-Aug with my fiance (we are getting married in Oct). Neither one of us will have a job since we will be moving states and she will have just finished college. She will hopefully have a teaching job starting in August, while I will be starting up a piano studio.

Obviously my income will extremely questionable for the first couple of months while I'm getting things together. How much trouble are we going to have getting a loan? I have 50k for a downpayment (we were looking in the 150-250 range). I don't have any kind of debts (no car payments, school loans, ect.) while she will have 14k in schools loans, no other debt.

Would it be best for us to take out a NINA (no income, no asset) loan based upon credit score (mine's 720, don't know about hers). Could we get a complete no-doc loan? Or is there any chance we will qualify for a full doc loan?

If we do have to take some kind of no-doc loan, how much higher is our interest rate going to typically be? Could we refinance after a year to get a full doc loan?

Thanks for all your help, this thread has been great.

bennyhana · #**189** 02-08-2007, 11:55 PM

again, awesome thread...

Not sure if this has been asked as I only read a little over half the thread.

What's the deal with reverse mortgages?

My father in law is comtemplating this and it seems to fall into the shady deal category. He is around 70 and doesn't plan to live longer than 10 years.

mrclean368 · #**190** 02-09-2007, 10:34 AM

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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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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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Well I paid to have the Brokers Price Opinion (which from what I gathered is just another appraisal but cheaper), it just seems like a waste.

From what I had read on ftc.gov it seemed that the lendor was required to remove the PMI automatically once the loan reached 78% LTV. Once the loan reaches 78% LTV the appraisal/opinion seems irrelevant.

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what do you think V stands for in LTV? it's not loan to purchase price, it's loan to value.

If your house would have appreciated quicker (maybe it did?) you could have gotten it removed earlier w/ a broker's opinion showing 78% LTV.

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The V stand for value. According to ftc.gov once the borrower has reached 22% equity based (or 78% LTV) on the ORIGINAL property value then the PMI is to be automatically removed.

http://www.ftc.gov/bcp/conline/pubs/alerts/pmialrt.htm