Ask Anything About Mortgages

[mrclean368]

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?

[Bicycles_Biatch]

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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

[SossMan]

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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?

[/ 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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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.

[SossMan]

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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.

[scotchnrocks]

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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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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

[SossMan]

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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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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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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.

[scotchnrocks]

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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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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.

[SossMan]

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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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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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It's always loan amount to appraised value. That's why you have to get an appraisal when you buy a house. On a purchase, the lender will always use the lower of purchase price or appraised value to determine the loan to value ratio.

For instance, if you got buy a house for 500k and it appraises for 550k and you want 90% financing, you will only be able to borrow $450k, not $495k.


Buyers with small mortgages, small home values tend to overpay on a % basis for a lot of the closing cost type items that are flat fees.

$300 for an appraisal on a $100k house is 30 basis points. $300 for an appraisal on a $1m house is 3 basis points.

[mrclean368]

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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.

[SossMan]

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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?

[/ 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 ]

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.