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Shirley Said:

Savings on state taxes for mortgage insurance payments?

We Answered:

Depends on what state you are in. Some states don't allow any deductions, even the items you can deduct for federal.

Don Said:

How do i add a formula to calculate for adding mortgage insurance?

We Answered:

In the us mortgage insurance will change with the amount financed and how much above the 80% the loan is. The tricky part in putting this in a calculator though is that it will also change some with different loan programs. Basically what I am trying to say is there is no set formula that can be applied to everyone. You can give people an idea, about $80/mo for a $150,000 95% loan but like I said its just going to be an idea since you dont want to give people a % from one program and have them use another and get a different figure.

Charles Said:

How can my pmi insurance on my mortgage be lowered?

We Answered:

PMI stays on a property until the house reaches 80% loan to value. The bank usually automatically removes the PMI when the value is at 78% of the loan.

So, you either need to make extra principal payments on the loan or you need to sit it out and wait for the market to gain value.

Talk to your bank again when you see houses around you selling for what you think will give your house an 80% loan to value and get an appraisal done.

If you have no equity now, it is impossible to make it go away.

Refinancing won't make it go away - unless, you get two loans instead of one. The first mortgage is done at 80% loan to value of the property. The second mortgage (at a slightly higher percentage rate) is done for the balance (in this case 20%). You pay both off at the same time, but the second is a shorter loan period.

It works because if you have a second mortgage for the same cost each month as the PMI, you are paying 800 toward your house, as opposed to paying it to PMI (money you won't see again).

Milton Said:

How much compensation is there in selling mortgage insurance?

We Answered:

Mtg insurance isn't sold. It is required by a lender if you are not putting at least 20% down. There just isn't a market for a sales rep in that line of work

Ricky Said:

Any tips on getting rid of mortgage insurance if you owe 85%?

We Answered:

You can get rid of mortgage insurance a couple of different ways depending upon how long you have owned the home. If you have lived in it a year or more, you can have it reappraised and if what you owe is 80% or less of the value of the home you can request that the lender drop it. Beaware however that they don't have to technically until you pay it down to 78% LTV but most will.

If you had a reason to refinance or pull cash out for some reason, you could also do a 2nd mortgage and as part of that transaction pull cash out to pay down the first mortgage to 78% LTV and then have a 2nd lien for what you need plus the other 7% to pay the loan down.

Either way, the lender gets to make the decision on whether or not they will let you drop the PMI. Start by calling them first. Another benefit of getting 80%ltv or less is that you do not have to escrow for taxes and insurance anymore and can handle it yourself. Depending upon where you live, that could be a lot of money.