PMI Charges

[nhcredit]

What is the name of your state? NH

About 6 months to a year ago, I request to Chase Manhattan, that my PMI be waived as I have been paying it for 3+ years now. They sent a letter back saying it can not be removed, as I had 1 payment show-up late. I had lost my job and let Chase know my payment would be late. They said, 'no problem'. Other than 1 late payment, my mortgage is always current and up-to-date.

Is there a way to demand PMI charges be removed. If yes, is there a way to get any of that money back??

Thanks!

 

[tarajean118]

ONce again I am not an expert, just been doing a lot of research lately. From my understanding you have to pay PMI until your Loan to Value of the house is 80% or less. So for example, say you owe 80,000 on your mortgage and your house is now worth 105,000. that would be about 76% LTV ratio and thus you would be able to drop the PMI, but I am not sure if missing one payment can affect that. I don't see why, You know what I do when I dont get the answer I like, I call back and see if I can get someone else to work with me, they have probally hundreds of peopel on staff and I believe the only thing you'll have to do is get your house appraised to prove that it's worth the equilavent of 80% or less LTV.

 

[Rhubarb297]

What is the name of your state? NH

About 6 months to a year ago, I request to Chase Manhattan, that my PMI be waived as I have been paying it for 3+ years now. They sent a letter back saying it can not be removed, as I had 1 payment show-up late. I had lost my job and let Chase know my payment would be late. They said, 'no problem'. Other than 1 late payment, my mortgage is always current and up-to-date.

Is there a way to demand PMI charges be removed. If yes, is there a way to get any of that money back??

Thanks!

The comment above about PMI is pretty good about the fact you need approximately 20% equity in your property in order for it to be taken off.

The purpose of PMI is additional assurance for their secured debt in case the value of the property drops and they have to foreclose. That's the reason for the 20%-22% equity ratio. One exception is they don't have to take off the PMI if you have lates in your payment history. Now I don't know how many lates, how late, or how recent those lates have to be. I actually had Chase for a number of years and I found there people very good to work with. I can't say the same for Wells Fargo.

You probably could always refinance to get rid of the PMI. It may or may not be worth it depending on your situation.

 

[MORTGAGEman]

By the way Wells Fargo is very good about getting rid of the PMI if you request it to be done, just as long as you have more than 20% equity in the house!

On the other hand there is PMI called Lender Paid Mortgage Insurance and this is already included into the rate, but I doubt that this is what you have if you are making PMI payments. Just thought I'd let you know the other.

And by the way most people now a days avoid PMI by splitting up their mortgages in an 80/10/10 or an 80/15/5.