Comments on: Automatic cancellation of PMI—or not! http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/ money: saving more, making more, needing less Fri, 21 Nov 2008 06:13:11 +0000 http://wordpress.org/?v=2.5.1 By: bookchiq http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-306 bookchiq Wed, 05 Apr 2006 16:08:27 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-306 So we had our house reappraised—and the given 60-day-sale amount is up 35% from our purchase price, giving us something like 42% equity, rather than the 23% we thought we had. We finally got a letter from ABN AMRO saying they dropped PMI. I'll believe it when I see it, but it's good to have hope. So we had our house reappraised—and the given 60-day-sale amount is up 35% from our purchase price, giving us something like 42% equity, rather than the 23% we thought we had. We finally got a letter from ABN AMRO saying they dropped PMI. I’ll believe it when I see it, but it’s good to have hope.

]]> By: contrary1 http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-305 contrary1 Sat, 01 Apr 2006 15:42:34 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-305 Gads, the fine print. I am fortunate enough not to have the PMI and do my own, but it always comes up when I buy something, the escrow offices assume I won't do the insurance or the property taxes. I have to be alert or they get included in the payment; sometimes even if I have said I will handle them myself. Getting something backed out is a struggle sometimes!!! Gads, the fine print. I am fortunate enough not to have the PMI and do my own, but it always comes up when I buy something, the escrow offices assume I won’t do the insurance or the property taxes. I have to be alert or they get included in the payment; sometimes even if I have said I will handle them myself. Getting something backed out is a struggle sometimes!!!

]]> By: Mighty Bargain Hunter » Roundup for week of 20 March 2006 http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-304 Mighty Bargain Hunter » Roundup for week of 20 March 2006 Fri, 24 Mar 2006 06:49:41 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-304 [...] This is definitely not TMI about PMI. (Frugal Underground) [...] [...] This is definitely not TMI about PMI. (Frugal Underground) [...]

]]> By: bookchiq http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-303 bookchiq Mon, 20 Mar 2006 21:28:09 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-303 I should listen to my readers more often! Kevin, you are absolutely right, and we did pay ahead, and that's why PMI isn't being cancelled automatically (I finally downloaded a copy of the Act and read it for myself). ABN AMRO has demanded a fee to reappraise our house (to make sure it hasn't gone down in value—which is laughable, considering our neighbors have sold and are selling their houses for tens of thousands more than any of us paid—but that's a seperate issue!). We've paid it and we'll see what happens next. I'll be so glad when this is done. I should listen to my readers more often! Kevin, you are absolutely right, and we did pay ahead, and that’s why PMI isn’t being cancelled automatically (I finally downloaded a copy of the Act and read it for myself). ABN AMRO has demanded a fee to reappraise our house (to make sure it hasn’t gone down in value—which is laughable, considering our neighbors have sold and are selling their houses for tens of thousands more than any of us paid—but that’s a seperate issue!). We’ve paid it and we’ll see what happens next. I’ll be so glad when this is done.

]]> By: bookchiq http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-302 bookchiq Fri, 10 Mar 2006 16:59:19 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-302 That's a good point regarding the wording of the info I quoted. However, most other sources put it differently: "...your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. " "Under HPA, mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan." "When the balance of the mortgage reaches 78 percent of the original value of the property, the lender must automatically terminate PMI, provided that payment is current." I should have posted one of those quotes originally and avoided the confusion, but I wanted to post them now to avoid any further confusion. That’s a good point regarding the wording of the info I quoted. However, most other sources put it differently:

“…your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. ”

“Under HPA, mortgage lenders or servicers must automatically cancel PMI coverage on most loans, once you pay down your mortgage to 78 percent of the value if you are current on your loan.”

“When the balance of the mortgage reaches 78 percent of the original value of the property, the lender must automatically terminate PMI, provided that payment is current.”

I should have posted one of those quotes originally and avoided the confusion, but I wanted to post them now to avoid any further confusion.

]]> By: Kevin http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-301 Kevin Fri, 10 Mar 2006 16:50:54 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-301 It says SCHEDULED to reach 78%. You paid ahead of shedule right... There is a difference. Kevin It says SCHEDULED to reach 78%. You paid ahead of shedule right…

There is a difference.

Kevin

]]> By: TADollar http://frugalunderground.com/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-300 TADollar Mon, 06 Mar 2006 17:26:52 +0000 http://frugalunderground.com/test/automatic-cancellation-of-pmi%e2%80%94or-not/#comment-300 You did the right thing by reporting the lender to authorities. Thankfully the regulations regarding PMI are changing more in the homeowners' favor. I know companies vary on how to request PMI cancellation, whether it be by phone or in writing. I hope your situation will be resolved soon! You did the right thing by reporting the lender to authorities. Thankfully the regulations regarding PMI are changing more in the homeowners’ favor. I know companies vary on how to request PMI cancellation, whether it be by phone or in writing. I hope your situation will be resolved soon!

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