I desperatly need someone’s advice. I purchased a condo out in vegas at $157,500. I could not afford ORANGE COUNTY for crying out loud… So expensive here. I hope that this condo will eventually appreciate. I have to pay pmi. In a year from now i plan on refinancing. Once refinance do I have to still pay pmi? Kinda confused if PMI apply’s to all mortgage loans. How long should I keep this condo? I live with parents RENT FREE!!! This was an investment only. Do you think Vegas was a wise decision? I am not an expereinced invester. I want advice.
Vegas is a good buy!
You do not have to refinance your home to get out of PMI all you have to do is get an appraisal thats put your loan to value to 78%
I don’t know what you currently owe on this condo but just as an example I will use your purchase price of $157,500 and assume that you got a 90% ltv loan which would put the loan at 141,750 to get out of pmi you would need an appraisal for 180k to 181k
You can keep the condo till you die if you want it is up to you.
You can own as many homes as you want to.
If it is good for passive income why not keep it.
So what your saying is that eventually I can get it appraised and 180k, once it appreciates. This will get me out of PMI? So a year from now I can get out of PMI after I appraise the value at 180k? Thanks for the response Offline…
I once called my vendor to ask if I can have my condo reappraised in order to get rid of the PMI but they said you had to have had the loan for two years if you are going to use an appraisal based on value appreciation instead of actually paying down the principal. Not sure but you may want to ask you lender.
How To Cancel Private Mortgage Insurance
You can cancel your Private Mortgage Insurance if:
Your loan balance has reached 80% of it’s original value, you have made timely payments, and you have no subordinate liens on your property (a second TD as an example).
or Your equity has built up thru appreciation backed by an approved appraisal.
If you purchased your home after July of 1999, federal law requires your lender to inform you when you loan balance reaches 78% of its original amount.
If your loan was sold to Fannie MAE or Freddie Mac, you will have a much easier time. These federal secondary market have much better cancellation rules than the Federal law.
As long as you have been timely with your payments and your home loan is over two years old, These two institutions have instructed their servicers to cancel the PMI when the loan to value drops below 80%. All you need to do is call the servicer and tell them you believe your loan to value ratio to be below 80%.
The servicer may give you names of approved local appraisers. (This is important because you don’t want to have to pay for any appraisal TWICE)
Also,depending on how much you have overpaid you may be due a nice hefty rebate.
So what can you do?
Find out your equity position.
Call or write your loan service company and ask them for your exact loan balance.
Ask your loan servicer(not the PMI insurance company) for their PMI removal Policy.
Go to home gains PMI removal calculator. You will need PMI Payment/Month, your purchase price, your original down payment, current outstanding loan. This will give you your equity level and your qualification for PMI removal.
If you qualify, then you will need to prove this thru an accredited state appraiser. It will cost you around $400.
Thank you for the helpful advice…I will look into this…
by doing an 80-20 loan you could’ve totally avoided pmi.
and what made you invest in Vegas??
i can’t afford anything in san diego either. doesn’t mean
i go out and buy in a market thats already appreciated
100% in past 3 yrs.
you always want to buy a market thats been flat for a few
years and has then started showing signs of picking up and
atleast 12 months of appreciation. thats when you beat
all the other investors. if you choose a market thats doubled
in 3 yrs then you’re probably buying after atleast half the
runnup has occured.
Vegas is a unique market. An average 5k people move here a month and they all need a place to live. Next time you invest, shop out for a good lender. Any experienced lender would avoid PMI.