New to Real Estate · San Diego · Member since 2021 · 5 posts · 0 votes
Hi all!
I heard through the grapevine that mortgage banks are starting to lower the PMI requirement to 10% instead of 20% in order to combat the rising interest rates...? Wondering if there is any validity to this rumor.
I purchased in Boerne, TX with 15% down 4 months ago on a SFH rental prop and would love to see if I can get my PMI removed.
Any information proving/disproving would be great! And if it is true, would love to find out the best way to approach my lender to get this approved.
Lender · Nashville TN - Licensed in AL AR DC FL GA LA MD TN, TX and VA · Member since 2021 · 583 posts · 338 votes
4y
Hi @Brett Foley - I've heard of banks/depository institutions offering some programs recently that are 10% down with no MI, but these are not conventional (fannie/freddie) loans and the 'no PMI' doesn't automatically mean they are a better deal for you than a 10% down conventional loan with PMI. There's a good chance the rates are higher and there may be additional/higher fees on other line items than with a conventional loan.
Also, I do not think you are going to refinance into a better deal right now than you got into 4 months ago given the rise in interest rates. Not to mention the fees you'll pay for a refinance. I guess it doesn't hurt to ask your lender though and see what they say! I would definitely ask your lender how many more months you have of paying PMI before making any decisions to payoff the current loan.