Article Score0

First home loan, FHA
All payments have been made on time for over 5 years, prop is worth $ 220k, I owe $ 117k
Mortgage company says that with an FHA loan I must carry PMI “until they notify you that you don’t”. My main question is: Does that ever happen? Has anyone ever been notified of this? Or is this just something they are scripted to say?
asked: I am curious….how did your value go up close to $ 103,000 in 5 years, especially in the current economy?

It didn’t, I did not disclose the purchase price.

5 Thoughts on FHA loans requite PMI. I have made all payments for 5 years. Do they ever let you drop PMI ?
  1. Reply
    Jason G
    February 14, 2014 at 1:19 am

    You can drop your PMI if you have enough equity in your property. Ask your bank what amount the property needs to be worth to drop your PMI, they might drop it for you if they think it is worth more, you might need to get an Appraisal done to show it is worth more. Good luck

  2. Reply
    February 14, 2014 at 1:34 am

    It depends on whether or not you paid the ‘Upfront mortgage insurance premium’ when you initially took the loan.”

    If you paid an upfront mortgage insurance premium, you will also be charged a monthly mortgage insurance premium until the loan-to-value of your mortgage reaches 78 percent of the initial sales price or appraised value of your home, whichever was lower (provided that premiums are paid for at least five years). You will reach the 78 percent loan-to-value threshold in one of two ways: Through normal amortization as you make your monthly payments, or by paying additional principal on the mortgage. Your lender can advise you on when the mortgage will reach the 78 percent loan-to-value threshold. If you were not charged an upfront premium, you will pay the monthly premium for the life of the mortgage.

  3. Reply
    Em C
    February 14, 2014 at 2:13 am

    Most companies do not let you drop PMI or drop it automatically until your loan balance is less than 80% of your original loan amount, not what the property is currently appraising for. Talk to your lender and see what their terms are. You may need to refinance to get rid of it for good.

  4. Reply
    A W
    February 14, 2014 at 2:41 am

    I am curious….how did your value go up close to $ 103,000 in 5 years, especially in the current economy?

  5. Reply
    February 14, 2014 at 3:27 am

    The house is worth what the market will sustain it as. So although it might of been advertised at 220K if you paid less, and other comparable homes in the area are selling for less or not selling then it is not worth 220k. If you do not have 20% equity then you pay PMI.

    Leave a reply

    Register New Account
    Reset Password