Removing PMI...

Our mortgage is 184K and the home is valued at 240K…we pay PMI of $79.73 a month…We have a 30 year fixed at 6.0…If we refi we could go for a lower rate i/o…but how soon can it be done? We close on the loan in a week. We put 10% down when we bought the home. Thanks for any advice! :-*

You only need an appraisal dated less than 1 year, preferably 6 months showing an 80% LTV (loan to value). You need to send this to your lender and request to remove PMI. You need not refi if your LTV is = or < 80%.


Unless there is a Prepayment penalty, you should be able to refi next month. I’m rather new here, so I’m sure someone will correct me if I’m wrong.


There isn’t going to be a pre-pay penalty on a 30 yr fixed loan.

What exactly are you trying to remove the PMI off your primary property?

Not primary, it is a second (vacation) home…we don’t have pmi on our primary home.

Here’s an easy formula that all homeowners can use to figure out their LTV (loan to value) take what you owe $184 and divide by what the property is worth $240 = .76 So, your LTV is 76…As long as you are below the 80% LTV you no longer need to pay PMI. Although you will need to check with the bank that is holding your loan because although it may seem as simple as just getting a new appraisal, some banks will not even look at a new appraisal until 24 months after you closed on the property. If they don’t have that 24 month requirement, get an updated an appraisal and submit it to th ebank with the appropriate docs and the PMI will be removed.

Milo is right, some banks will require that you keep the PMI going for 24 months even if you are below 80% LTV. Depends on the lender.

Yep, Chase is one such lender that requires you to keep it for 2 years before they’ll even consider removing it.

Well, the lender is through the builder, and they said it would need to be refinanced…but they said the loan may be sold…Our first payment is due 12/1/2005… a precon…If the loan is sold to Counrywide, will they approve removing pmi if we have our primary residence with them? We also had our former residence with them.

Can a lender require a person to agree to PMI before granting a loan?

If the loan is sold to Counrywide, will they approve removing pmi if we have our primary residence with them?

You would probably need to refinance it. CountryWide and all other Lender’s for that matter could care less if you have other loans or accounts with them. Every scenario is different.

The only lenders that “require” PMI are the conforming lenders. They will require PMI on all mortgages that have LTV’s (Loan To Values) of 80% or more. The PMI is only charged on the amount over the 80%.

This is why most individuals who are applying for funds in excess of the 80% LTV will either pay 20% down or will obtain a Line of Credit or Second Mortgage for the balance of up to 100% CLTV (Combined Loan to Value) I.E 80/20

This will keep them out of PMI. Nonconforming Lenders offer products with higher LTV’s (up to 100% in one loan). However, the rates will be higher than the conforming rates AND there will be NO PMI.