Author Topic: Mortgage PMI question  (Read 1552 times)

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Offline rich_t

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Mortgage PMI question
« on: September 03, 2012, 03:59:44 PM »
I know a couple of you here have worked in the real estate and mortgage industries....

If my original loan had a PMI payment and they sell the loan, does/can the new mortgage owner still charge for PMI, or does the PMI only apply for the original loan holder?
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Offline freedumb2003

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Re: Mortgage PMI question
« Reply #1 on: September 03, 2012, 04:03:27 PM »
I know a couple of you here have worked in the real estate and mortgage industries....

If my original loan had a PMI payment and they sell the loan, does/can the new mortgage owner still charge for PMI, or does the PMI only apply for the original loan holder?

As long as your debt/value ratio is < 80% you will pay PMI no matter who holds the note.

Offline rich_t

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Re: Mortgage PMI question
« Reply #2 on: September 03, 2012, 06:24:09 PM »
As long as your debt/value ratio is < 80% you will pay PMI no matter who holds the note.

Yeah well...  The new mortgage company never came out to inspect/verify current market value of the home to compare debt/value ratio.  So how does that part factor in with the new note holder in cases like that?

What is your particular expertise in the arena?
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Offline debk

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Re: Mortgage PMI question
« Reply #3 on: September 03, 2012, 06:33:11 PM »
The new mortgage company won't come out and inspect the house unless you fail to make 2 or more payments in a row. They are taking the "word" so to speak of prior mortgage holder.

The only way you can have PMI removed is if you request the lender to have an inspection and opinion or appraisal depending on the lender, done. You have to pay for it, and you are hoping that the new valuation is enough difference to get it removed. Depending on the lender, they will either have a realtor do the inspection and a broker price opinion or the may require an appraiser. I can tell you an appraiser is a lot more money....at least $350.

When the original mortgage is taken out, the loan can not exceed 80% in order to not pay PMI. It used to be that you could get it removed once you were down to 80% or less. Lately, I have heard it has to be 70-75% with some lenders. Which may be difficult in this market, depending on where you live and whether or not there have been any foreclosures in your subdivision. Pretty strict criteria must be met when determining value. It's not as lenient as it is when the original purchase is made. Most of the ones I do require an interior inspection.

I do these inspections for lenders, that's how I know how they are done.
« Last Edit: September 04, 2012, 10:48:46 AM by debk »
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Offline rich_t

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Re: Mortgage PMI question
« Reply #4 on: September 04, 2012, 02:11:14 PM »
Thanks Deb.
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Offline debk

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Re: Mortgage PMI question
« Reply #5 on: September 04, 2012, 08:50:33 PM »
Thanks Deb.

You're most welcome, Rich.
Just hand over the chocolate...back away slowly...far away....and you won't get hurt....

Save the Earth... it's the only planet with chocolate.

"My therapist told me the way to achieve true inner peace is to finish what I start. So far I've finished two bags of M&M's and a chocolate cake. I feel better already." – Dave Barry

A balanced diet is chocolate in both hands.