PMI cancellation question

[silva]

I wanted to know how much I needed to pay off on our principle on our mortgage because I knew we were close to the 80% LTV ratio which could trigger our PMI being cancelled.  Our credit union sent us a letter that we were denied the PMI cancellation request because we were 81.97% LTV.

It also said that we have an option to have our property newly valued for at least $207,000.  That makes sense to me. It also provided the principle pay off amount to get to 80% LTV. 

Here's where I got confused.

Included in our packet was a Borrower-Initiated MI Termination Evaluation Result from Fannie Mae.  It shows our property value amount at origination of the loan AND a property "AS IS" Value Amount. That AS IS amount is greater than the $207,000 stated above. 

Isn't that then the property newly valued number?  Why provide that number and then state we need to pay for a new appraisal from our credit union? Doesn't that qualify us to cancel PMI?

I called customer service and she couldn't get to the bottom of that since they didn't have the fannie Mae document my file.  Instead, they are sending us a letter explaining it, but it won't get mailed until the 22nd! 

Appreciate any ideas. 



On a different note, would another option be to refinance?  I see rates are around 3.7% and we're at 5.25%. That could kick the pmi off then?

[silva]

update...I just spoke to my credit union and they sent me a payment schedule if we refinanced....we'd save $330/month and close to $31,000 in interest. I think this is the road we may want to go down.

[tealblue]

Nov 8, 2019 16:20:08 GMT -5 silva said:

update...I just spoke to my credit union and they sent me a payment schedule if we refinanced....we'd save $330/month and close to $31,000 in interest. I think this is the road we may want to go down.

Would this be resetting your loan to 30 years? If so, you may want to shop around or consider a shorter term. I had talked to Quicken loans who said they do a “yourgage” which is any length of time from 8-30 years or something. So if your current payoff date is 26 years, you could refi into another 26 year loan or drop to 19 or something if the payments were good for you.

I am currently refinancing into a 15 year loan through Chase, they had the best rate I could find without paying an astronomical amount of points.

[silva]

Nov 8, 2019 19:39:41 GMT -5 tealblue said:

Nov 8, 2019 16:20:08 GMT -5 silva said:

update...I just spoke to my credit union and they sent me a payment schedule if we refinanced....we'd save $330/month and close to $31,000 in interest. I think this is the road we may want to go down.

Would this be resetting your loan to 30 years? If so, you may want to shop around or consider a shorter term. I had talked to Quicken loans who said they do a “yourgage” which is any length of time from 8-30 years or something. So if your current payoff date is 26 years, you could refi into another 26 year loan or drop to 19 or something if the payments were good for you.

I am currently refinancing into a 15 year loan through Chase, they had the best rate I could find without paying an astronomical amount of points.

It would not.  It's for 20 years.  Great catch!  

[Susie]

We just refinanced (locked in August, closed in October), and getting rid of PMI was part of the reason.  We previously had 4.375% for 30 years, and had 21 years to go.  We did 3.25% for 20 years.  We were really tempted by 2.875% for 15 years, but ultimately decided against it since it would have raised our monthly payment and we currently have 2 in daycare ($$$$).