Before you rush to refinance, do the math and see how the numbers compare. You want to consider the new interest rate and closing costs on the refinance to understand if you are coming out ahead. You may get rid of MIP and end up paying more in the long run.
Of course keep in mind that a banker gets paid for every loan they write, so they will suggest you refinance. Just make sure your payment decrease isn't just because they stretched the term back out.
No problem and congratulations on your equity milestone. Depending on when you got the loan, you might consider a rate term refi if you have a chance to get a better rate. The PMI falling off would happen during the refi process as well, providing you got your number during appraisal.
What's the process of getting PMI removed if I now have 20% in equity? Who I contact first?
What type of loan do you have and when was it originated?
aw man, I teeing it up for you!
I'm just making sure the loan wasn't an FHA loan after July or so 2013. If it is and the down payment was less than 10% PMI is there for the life of the loan. Always a pleasure Sir.
Before you rush to refinance, do the math and see how the numbers compare. You want to consider the new interest rate and closing costs on the refinance to understand if you are coming out ahead. You may get rid of MIP and end up paying more in the long run.
Of course keep in mind that a banker gets paid for every loan they write, so they will suggest you refinance. Just make sure your payment decrease isn't just because they stretched the term back out.
What's the process of getting PMI removed if I now have 20% in equity? Who I contact first?
What type of loan do you have and when was it originated?
aw man, I teeing it up for you!
I'm just making sure the loan wasn't an FHA loan after July or so 2013. If it is and the down payment was less than 10% PMI is there for the life of the loan. Always a pleasure Sir.
Well this counts as the thing I learned today. We got in under that bar. Solid info!
Flipper/Rehabber · Rochester, MN · Member since 2019 · 12 posts · 2 votes
6y
@Robert Richardson we just finished this last month in Minnesota. We actually got contacted by our lenders. We had to pay $200 for an appraisal and then the lender reviews the appraisal. Takes about 3-4 weeks. Then they back pay you because you continue paying for the PMI during the process.
@Robert Richardson we just finished this last month in Minnesota. We actually got contacted by our lenders. We had to pay $200 for an appraisal and then the lender reviews the appraisal. Takes about 3-4 weeks. Then they back pay you because you continue paying for the PMI during the process.
What type of loan did you have and when did you originate it?
@Shaun Weekes we have a conventional and January 3rd will be the start of the 3rd year.
That makes sense because it' s a conventional loan. FHA loans work a bit differently depending on the application date unfortunately. Congrats on getting through the process.