All Forum Posts by: Sean Crowe

@Paul Defngin Thank you so much for the clear explanation! Given the LTV at 80.1% our PMI will only last 1-2 months before we can request it be removed. At ~$50/mo, it's really not a big deal. However, I did want to understand the reasons behind the details better so I appreciate learning about LLPA.

Presuming those 1-2 payments are on time, under what conditions can they refuse to drop the PMI once our LTV drops below 80%?

@Erica Larence-Penna Ah, I see what you mean. My feeling is the property would not actually appraise for what they are guessing with the property inspection waiver, so having an actual appraisal would only hurt us. And to your other question, yes, the closing costs are more than fair. They are crediting us nearly $3k. How are they making money on this deal? Inflation is going to outstrip the 2.5% interest.

Hi all,

Thanks for the advice, which is well taken. I am curious about the details, but you're right, this is a screaming deal. Signing the rate lock documents today.

@Erica Larence-Penna you mentioned wanting to support the value with comps or an actual appraisal. In my situation, why would I want them to do this? More value is better, no? They are not loaning me additional money beyond what I owe on the premium, i.e. this is not a cash-out refi, so there's no increased change of getting underwater.

Thanks all

Sean

Hello,

I'm working on a refi for my primary residence. A lender has offered us a loan estimate (waiving the appraisal) and magically valuing our property at $555,555. The loan amount is $445,000. This puts the LTV at 80.1% and forces us to pay PMI for 1-2 months before we can request PMI be stopped. Getting a rate of 2.5%.

$555,555 seems like an arbitrary number designed to put the LTV at just above 80%. I asked if they could loan us $444,000 instead, with us bringing a bit more cash to close, so that we could avoid having to deal with PMI at all (their terms for escaping PMI seem very vague). The loan officer tells me "I don't know why, but if your LTV dips below 80%, we will have to decrease credits by $1500."

I would have more skin in the game with a lower LTV. Why would they penalize me for this? Are they hoping to exploit me for more PMI than 1-2 months?

Thanks in advance,

Sean