How does a mortgage holder get out of PMI payments on their mortgage loan?
Seems to me that PMI is very costly for the home owner, especially me with a perfect credit rating and new funding source to maintain a mortgage if I lose my job (my job is very secure). Please any suggestions on how to get the PMI waived by the mortgage company.
Asked By: - 4/20/2009
Best Answer - Chosen by Asker
PMI protects the lender in case your loan goes into default. The only way to have it removed is when you owe less than 80% of your home's value.
Answered By: Em C - 4/20/2009
Additional Answers (6)
You can't get PMI waived. The only way not to have PMI added to your Mortgage is to put 20% down on the home. You can also get PMI removed once you pay down the principal of the mortgage to a point where there is 20% equity.
Answered By: AJ - 4/20/2009
If you already have the mortgage, you could threaten to switch the loan to a different lender. If you are just getting the loan, negotiate. Tell them you won't accept a loan that has PMI. Anything can be negotiated.
Answered By: hottotrot1_usa - 4/20/2009
I had the same problem until I contacted a law firm because a real estate investor had told me there were predatory lender laws broken.... he helped me out and i even got a mortgage payment reduction... More
Answered By: civilcop611 - 4/20/2009
PMI is in place to protect the bank from the foreclosure process. Essentially your paying the bank upfront for the costs associated with foreclosure. By some calculation they figure you more likely wont go into foreclosure after 80% of your loan is paid. Either that or you have already paid enough... More
Answered By: Theandysullivan - 4/20/2009
Unless you bring 20% down to the table, you are paying PMI. Your credit score and arrogance does nothing here.
Answered By: godged - 4/20/2009
You cannot. Unless you put 20% down There is no way in heck a lender in this day and age of mortgage debacles that is going to forego PMI. It would never make it past underwriting.
Answered By: †Ask Me Anything† - 4/20/2009
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