Real Estate Loan question

Hello,


I've spoken to a couple of loan officers whom mentioned that I need to refinance in order to drop the PMI on my home.  The value has recently gone up about 30% and I refinanced about 1 1/2 years ago.  When I called my back about 6 months ago they mentioned that all I needed to do was to get an appraisal and if it came back to where I had more than 20% equity, the PMI would be dropped.  I spoke with the same people now and they seem to have changed their story.  I wanted to get this more from the horses mouth, this is my I'm inquiring about how to drop the PMI.


I live in Orange County, California.
uppercut71412Asked:
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PortletPaulfreelancerCommented:
Hi I stumbled on this due to the SQL Query topic you have chosen, I had to look up 'PMI' which I gather is Private Mortgage Insurance (wkipiedia was useful: here)  and noting that I don't live in the USA everything that follows is based purely on some quick research.

Your question appears to be a legal one by reference to the Homeowners' Protection Act "which applies to people who bought their homes after July 29, 1999"(1) and that there is provision in that act where PMI may be cancelled at "once they pay their loan balance down to 80 percent of their home's original appraised value" (2) but also that it should be cancelled when "balances drop to 78 percent, their mortgage servicer is required to cancel mortgage" (2)

"But don't count on the lender to notice -- keep track of the date yourself" (1)

However there are several conditions/caveats to all this - and this is NOT legal advice which you might want to seek out. Note the term "of their home's original appraised value" as an example of such a condition and that second mortgages or other "liens" also appear to influence your position here.

Refs 3 & 4 below also may be worthwhile reading, (4) in particular.

(1) http://www.nolo.com/legal-encyclopedia/private-mortgage-insurance-pmi-30108.html
(2) http://www.realtor.com/home-finance/insurance/cancel-private-mortgage-insurance.aspx
(3) http://michaelbluejay.com/house/pmi.html
(4) http://www.investopedia.com/articles/pf/07/outsmart-pmi.asp

There is a way also to get acts on-line, I can find it I think if you need it.
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PortletPaulfreelancerCommented:
apologies, I forgot to ask - are you seeking advice on the maths here?
and if so, perhaps the Excel topic would be more helpful than SQL?

(I can add that topic if you wish)
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PortletPaulfreelancerCommented:
FYI
The Homeowners Protection Act of 1998 (the Act) was signed
into law on July 29, 1998, and became effective on July 29,
1999. The Act was amended on December 27, 2000, to
provide technical corrections and clarification. The Act, also
known as the “PMI Cancellation Act,” addresses homeowners’
difficulties in canceling private mortgage insurance (PMI)2
coverage. I
http://www.fdic.gov/regulations/compliance/manual/pdf/V-5.1.pdf

US GPO search (but cannot see the yr2000 amendment there)
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TommySzalapskiCommented:
They typically require that they send the appraiser out themselves. (They say it's so they know you don't just get your appraiser friend to fake numbers for you, I think it's just to make it as difficult as they can).
So if you already got it appraised again, they might not count that one. You can argue with them until you get a manager and it might work. Otherwise you'll just have to pay whoever they send out to appraise it.

Tell them you need it appraised for PMI removal and if they give you the runaround, stand your ground and ask to have the call escalated.
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aburrCommented:
" I wanted to get this more from the horses mouth"
The horses mouth is the people who are requiring you to get a PMI>
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nickg5Commented:
Homebuyers that can’t afford to put 20% down on the purchase price of their new home often opt to take out private mortgage insurance (PMI) with their lender. This insurance protects the lender from a default and can add more than $100 to a monthly mortgage payment. It’s very common to get PMI insurance if you have less than 20%.


How to Reduce or Eliminate Private Mortgage Insurance
http://www.foxbusiness.com/personal-finance/2013/03/27/how-to-reduce-or-eliminate-private-mortgage-insurance/
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nickg5Commented:
thanks, good luck with your loan and pmi.
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