Profile picture for Alegna7812

How can i possibly get rid of my PMI with the value of my house constantly dropping?

We can't afford to pay xtra to the loan as we are already paying an extra $430/month in PMI. We have never once been late on a payment, if we didn't have the PMI this would make the payment that much more affordable, however it appears that we are stuck!
  • November 24 2010 - Saugus
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Answers (5)

The easiest and most simple method is to have 20% equity in your home.  You can either ask the bank to come out a re appraise it and see what you need to make up the difference.  At that point you would simply need to pay off the difference in your principal payment. You can also do it thru a refinance but it will still come down to the same scenario. If you have nay further questions, please email me at Shawn@ShawnsMyAgent.com

  • November 27 2010
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Private Mortgage Insurance or PMI is a nice way for lenders to take less risks it means that they are making you pay for an insurance that will reimburse them around 20% of your loan if you default and your deed of trust is taken to foreclosure, there they will get probably 70% of the loan or even less but they will get from the PMI company 20%. Now if your property value dropped even more, there is no way to get off this PMI insurance unless you come up with the difference, but it will be like throwing money to the drain. We understand that some people are attached to their homes thanks to the good moments lived and so but the truth is that the home is not yours until fully paid, before you are just a tenant of your lender with a lease agreement without expiration date..
  • November 25 2010
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Profile picture for Ryan Rygmyr
That is going to be a real tough one.  My experience with current lending guidelines is that you have to have an 80/20 loan to value.  
  • November 25 2010
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Check about a refinance or loan modification. If you can't get rid of the pmi maybe you can lower your rate. It would obviously have to be a savings for you in the long term to apply. If money is tight maybe stop contributing into a retirement account and trim areas like movie channels and alarm systems and things you just don't need. Go to creditcards.com and see if you qualify to transfer your balance to a 0 percent interest rate and save up what would be your finance charges. There are a varity of ways to get that extra bundle you need to get equity where it needs to be.
I need to say that these all depend on the situations
  • November 24 2010
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Profile picture for sunnyview
There are a few ways to remove PMI. Unfortunately, none of them other than prepayment and time itself will help as long as the value of the house is dropping. Maybe one of the lenders will have some better ideas.
  • November 24 2010
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