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Answers (4)
- SteadyState
- Contributions:787
Your request is the equivalent of asking the lender to increase their risk by eliminating your insurance protection payment. Thus you lower your cost (hence risk) but you increase your lenders risk. Why would a lender do that? Like other agents have indicated - PMI will get eliminated when you have paid 20% of your mortgage.
- Nelson Bayne, "StCasimirsSavingsBan"
- Contributions:39
I am going to recommend that you look a little deeper. For example - how long have you had the loan? - your current outstanding balance?
Then - armed with this information - and the value of your property - which you can gain by asking a Realtor professional for a market study - request the guidelines of the lender for waiving private mortgage insurance. Not all lenders sell their loans into the secondary market. In the 'old' days - a couple of years ago - prices excalated and the mortgage insurance (not FHA) could be waived easily. Today - the prvate mortgage insurance contracts will have set parameters an give you detailed instructions at closing - about their terms. The lender terms could be more restrictive.
Conclusion: Contact the servicing department of your servicing lender. Ask that they provide you with their waiver of mortgage insurance guidelines. Work within their guidelines and hopefully you will have success.
Loooking into current interest rate refinances - may help - becuase the new lender may not require mortgage insurance - I would recommend a community banker in your area to help.
Then - armed with this information - and the value of your property - which you can gain by asking a Realtor professional for a market study - request the guidelines of the lender for waiving private mortgage insurance. Not all lenders sell their loans into the secondary market. In the 'old' days - a couple of years ago - prices excalated and the mortgage insurance (not FHA) could be waived easily. Today - the prvate mortgage insurance contracts will have set parameters an give you detailed instructions at closing - about their terms. The lender terms could be more restrictive.
Conclusion: Contact the servicing department of your servicing lender. Ask that they provide you with their waiver of mortgage insurance guidelines. Work within their guidelines and hopefully you will have success.
Loooking into current interest rate refinances - may help - becuase the new lender may not require mortgage insurance - I would recommend a community banker in your area to help.
- Brian&Kelsey Johnson , Broker Associate, "BrianKelseyJohnson"
- Contributions:41
PMI drop off depends on the loan. FHA is a minimum of five year of paying, even if below 80%. I don't think you have a chance on negotiating these figures they are set up to make the loan conform so it can be sold on the secondary market.
- Pat O'Reilly, "patohomes"
- Contributions:163
PMI will drop off after 20% of the mortage is paid...really no negotiation.. it is based on appraised value of the house and paying off 20%..
How do I negotiate with the Lender regarding the PMI component and when would it drop off ?
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