I just recieved an annual escrow balance sheet from my bank regarding my PMI. The PMI is going up due a “projected deficit”. I refi’d to my local bank last yr. in June. My pmt. is going up like $7/mo. Is this something that’s normal? I don’t recall my escrow pmt. increasing from anything but a RE tax increase. Could the PMI increase be due to an increase in the sub-prime mess? My hope is that this is just a "glitch"and a one time event. I just don’t want the mrtg. to keep going up each yr. Any thoughts?
Have you called the bank and asked them directly?
Yes. I’m waitng for them to call back. I know $7 is minor, but I just don’t want things to be creeping up. I always thought the PMI was fixed for the loan duration.
Has the monthly PMI actually changed or is the bank simply trying to make up for some other shortfall? I have never heard of PMI being an adjustable payment, it is set at closing and based upon the ltv and loan amount at that time. Get the answers from your bank and don’t be surprised if they have made a mistake.
The bank is making up for a shortfall in the PMI escrow. Looking at the disbursements since my refi, they skipped a month. I paid them, they just skipped the disburement for that month. Now they’re saying there’s not enough in escrow so they’re charging me over a 12 mo. period to make it up. They haven’t called me back so I’ll be talking to them tomorrow.
Well I talked to the bank today. The initially just told me my PMI was going up. Well no @#$%! I said I needed to know WHY!? They did some more searching and found it was their mistake. So it’s all good now. I just hope that this isn’t somehow tied to an increase in PMI on their end with the “mortgage crisis” and they’re trying to pass that on to us. It’s a local bank, but I hope this is not a trend. Keep yur’ eyes peeled!!