Fighting to Get Rid of PMI

TxStHorn

TxStHorn

1,000+ Posts
Anyone dealt with / fought this before?
Mortgage through Wells Fargo, with PMI of about $104/month.

Wells Fargo says house must be worth $234,500 in order to get out from PMI,and it must be appraised, at my cost, by their appraiser.

Comps in my neighborhood list homes selling for past 90 days at a range in excess of the $234K I need.

Two weeks before appraisal, my tax appraisal comes in at $234, 600. I know these are usually below market value because of the 10% cap, so I figure should be no problem.

Of course, the Wells Fargo appraiser comes back today with an appraised value of $233,500. Sorry, just missed it by $1K. As if I couldn't see that coming.

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Anyway - anyone ever successfully fought this sort of thing? I'm pretty p.o.'ed about it.
 
no, but now you have that appraised value # so as soon as your principal goes down to less than 80% of that number, which is 187,600, you can call them back and tell them to remove the PMI. The appraisal should be good for 90 days. Or you could just pay down the required amount with your next payment and then calll them back. if you are that close, and you have the money, then it should pay for itself in less than a year, right?
 
I got rid of it when I put 20%+ down on our house at closing.

Never felt better, either. I feel for you dude. Do what was recommended above. Take their appraisal and pay enough on your principal to go below the 80% ratio, then call them back and tell them to shove their PMI premiums up their asses.
 
I need to do this. Where do you get the comps? And then who do you call? My mortgage is with Wells Fargo as well.
 
My wife's friend is a realtor, and pulled the comps for her. I'm not sure exactly how you do it on your own, but if you know a realtor, or possibly a mortgage lender, they ought to be able to do it for you.
 
In this case you're better off swimming with the current instead of against it. Send the servicer a letter ASAP saying you want to stop paying for PMI. Include a copy of the appraisal and a principal reduction check for $800. Case closed.

Do it now. It's easy money.

Bernard
 
I would ask to speak with a manager in loan servicing. Point out to him that their appraiser came up with a value $1,000 below the CAD value. As you stated, usually the CAD value is less than the real market value, sometimes substantially. So you have two appraisals with a variance of $1,000. The valuation of real estate is not an exact science. Point out to the manager that you really think the appraiser's value was low and you would like them to consider using the CAD value, especially since it is so well supported by the other. Also, you would like the name and contact info for the appraiser to discuss his or her work. They might consider raising their value by $1,000 or more if they knew the CAD value. If all else fails, if you can, I would pay the shortfall off as you will save over $100 per month. If you have any questions and want to brainstorm this issue, my email address is [email protected]. (Brooks Hiller)
 
It's $800. Bernard is right -- cut them an $800 check with a memo saying "payment towards principal" and demand that they drop your PMI.
 
I ******* hate PMI. I pay $69/month PMI on a investment property that was appraised for $195k when I bought it for $130k w/10% down. I now owe $112k on it . The condo is now worth at least $300k yet I can't get them to drop the PMI unless I pay ~$400 for a new appraisal.
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one time fee of $400 to save $60 per month is something you should have done as soon as the lender would accept the appraised value as opposed to the sales price. why haven't you done it yet?

its funny, when lenders institute guidelines to protect them from losses, like PMI, people *****, but when they try to listen and roll out easier guidelines, they get screwed like what's happening right now with all of the defaults.
 
My house cost came out above my initial loan so I slipped right under 20%. The bank refused to take my new appraisal and had initially appraised the property based on plans alone. I even added sq footage in the build and they refused to take the new appraisal after they told us we could get one.

Now I'm going to refinance with another company, get a lower percentage rate, drop the PMI and tell them to kiss my butt.

They wouldn't budge and their desire to get my "mandatory" year's worth of PMI at about $130 a month is going to cost them well into 6 figures of interest when I go with another company.

Do what it takes to get rid of your PMI. Paying down now will also lower your final interest payment some.
 
I'm an appraiser (in Houston) and thought I'd throw some thoughts:

1. CAD value has no relation to appraised market value.
2. If you paid for the appraisal then you're entitled to a copy of it by federal law. You have to ask though.
3. An appraisal is NOT good for 90 days. It's good for one day, the "effective date" of the appraisal.
4. When did you get your loan? The Feds passed a law for automatic PMI removal when you go below 80%. So you really don't have to watch the clock.
5. Getting an appraiser to change his estimate of value is tricky. He may or may not even take your phone call. All of us are different about that. Keep in mind that even though you paid for the appraisal, the appraiser is engaged by the bank, not the homeowner. What I'm trying to say is that the appraiser is looking out for the lender first.

Other than that, go pay down the chump change to go below 80% and you're good.

Also, someone else posted about BOA doing a no PMI loan ... ???? really? I know of no lender in today's lending climate that will take a loan without PMI on any LTV that requires it.
 
More than likely it is LENDER PAID MI. So you may not be getting the lowest interest rate available. Also, if you make less than $100K a year, than your monthly MI is tax deductible (like the interest in the loan).

Be careful of these banks saying "NO FEE" or "NO MORTGAGE INSURANCE". All they do is up the rate on the loan and effectively make their fees up with the higher interest rate on the secondary market. Any broker/lender should do this, but the big mistake of retail banks if finding someone knowledgable that will sit down and go over different loan options.

Just because it is "NO FEE" or "NO MI" may not be your best option on a loan.

Also another thing, we have all seen the commercials by Ditech. Next time, try and look closely and know that they are charging you an insane amount of points and fees to obtain that rate.

And above all, our industry has been hurt by these "sales" people. Fortunately, alot have left the business as they were order takers and their skills were honed on a car lot. Find someone who is genuinely interested in your stituation and will be happy to take the time to answer any questions with KNOWLEDGE. If you ever feel like you are not getting questions answered thoroughly go find someone else.
 
I don't pay a PMI, that I recall and I did not put 20 percent down. I think, but could be wrong, that going thrugh the VA exempts you from that. I may be wrong and will double check. But I don't think I pay that.

I know I am past the 80 percent point so I could get it taken away no matter what, right? I've never refinanced or anything like that. It sure has been helpful to make extra payments, even if not a full months worth, on the principal all along. I am saving thousands in the end.

Somebody here stressed this awhile back and you were not shitting us about it. Anyboy buying a house that has not done so...do this. Pay extra every month even if just a few dollahs.
 
Txsthorn, either you had an ******* appraiser or I got a good one. I just did the exact same thing with WF and a similarly priced house and the guy appraised mine fairly.

Sorry to hear that. Can't you get your own appraiser, but for more money. For some reason I thought that was another option.
 
CL, VA loans do not have MI. The funding fee that you paid (unless you are a disabled vet, then it was waived) is what the VA uses to guarantee the loan.
 
I actually had to pay zero. It was all paid for me, which was kind of nice. I actually got paid a thousand bucks on the deal which went right to Home Depot. No earnest money (whatever that is) either. I lucked out, bigtime.

This was in '98.
 
PMI = legalized robbery...the house is the collateral on the loan. There is no reason to charge above the interest rate that the bank has agreed to. I get pissed off every time I hear those three letters...that being said, it's really easy to avoid PMI...if you can't put 20% down, do an 80/15/5 loan. If you can't put 5 percent down, you probably shouldn't be buying a house.
 
Yes, but the bank only agree to give you that interest rate becuase their risk was reduced via the additional collateral of the mortgage insurance. Without that coverage, they would have had to charge you a higher rate commensura with higher risk, or perhaps you wouldn't have gotten a loan at all.

Bernard
 
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