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Jose Said:

Can your mortgage lender require PMI when your home value decreases?

We Answered:

Most mortgage contracts do not have a PMI clause for future equity changes. Furthermore, the mortgage holder doesnt have the time nor the money to order appraisals on mortgage inventories, to see if you need PMI.

Eddie Said:

FHA loan or lender PMI loan?

We Answered:

Joan,
There are some new rules in the FHA program. Now under the new legislation PMI does cancel at 80% LTV (when requested) or 78% LTV when reached through payments and pay downs. Here is the kicker in your situation, you have a lower payment with the lender pais MI, but you have a question to ask...how long will you be in the house? I am a mortgage professional, and I know there is a lot to go into answering that question. Just remeber these points, 1. PMI is tax deductible these days 2. Your rate will not decreas once you do pay down to 80%. So the answer if I were you would be to ask how long you are going to be in the house? if it is not long the take the LPMI, if this is the house forever then go with the monthly MI. Just curios what about a convential mortgage?

David Said:

Is there ANY way to remove my obligation to pay PMI if I still owe over 80% of the loan amount on my condo?

We Answered:

You can ask, but i have never seen it done. PMI is put in place to protect the lender should you default on the loan. For them to remove it increases their risk, something that especially today most banks are not willing to do. You can call the bank and tell them about your financial hardship and see if they can suspend your payments for a few months, and they can tack them on to the back end of the loan (if you skipped 6 months in payments you would owe on your loan for 6 months longer), It is certainly worth seeing if they would consider this. Good luck

Jenny Said:

My lender wants to charge PMI funding fee and a pmi ?

We Answered:

He's right. When you finance with FHA you are required to pay PMI on the life of the loan, even if you have more then 20% equity in the property.

I'm guessing because you're getting a Jumbo, they are requiring the funding fee, as well as the monthly PMI payments.

I'm guessing he's recommending that you go through FHA because you only have 3% to put down. I'm not sure, but I think most regular mortgages require at least 5%, and a jumbo may require even more.

I don't know where you live, but a half million dollar house in around here is a pretty damn nice house. Unless this is a fabulous deal and an incredible location, I'd hold out for a better price or even a different house. It's a buyer's market, and you can pretty much name your price, depending on the area of the country you live in. I don't even want to THINK about what your payments are going to be!

Jacqueline Said:

Mortgage Help!!! (Lender Paid PMI)?

We Answered:

you should pay the PMI. Then when you are at 20% equity, you get rid of the PMI and still keep the lower interest rate. The lower rate stays for the length of the loan, the PMI doesn't.

Bruce Said:

Found a lender that will pay for my PMI. I have great credit, no debt, except car payment.?

We Answered:

The benefit to having the lender pay your PMI is that your payments will be lower. Your rate will be adjusted higher to pay for the PMI, but your overall monthly payment will be lower than if you paid the MI out of your pocket.