Any GFY lawyers on? Mortgage/PMI question - GoFuckYourself.com

abshard · 06-08-2007, 01:54 PM

I purchased a rental house in California a few years ago and put 10% down. This required me to have a PMI which is about $160/month. I was told by the loan broker that as soon as the house appreciated to where I had about 20-25% equity I could have the PMI taken off. Well that happened within less than 6 months. I called the mortgage company and they sent me a letter stating I had to wait 2 years before I got the house re appraised to get the PMI taken off. So I thought okay no problem I guess I will just wait 2 years. Now after the 2 year period I contacted them again and they sent me a letter again this time it says I need to have have a LTV of 70% but the kicker is new appraisals will not be accepted to lower the LTV to the required 70%. So basically what I have to do it send them a big check to get this $160/month fee taken off.

Is there anything I can do? Is this legal for them to make me keep the PMI even though the house has almost doubled in price?

ModelPerfect · 06-08-2007, 02:07 PM

Nope. They're trying to screw you. I'm in the same situation, only I opted for an "Tax Adjusted Mortgage Insurance", which basically meant they raise my interest rate for 2 years and pay the mortgage insurance themselves with the promise of lowering the interest rate after 2 years. This way, I get to claim the normally tax-non-deductible mortgage insurance as a deduction. But here I am at year 3+, and they refuse to lower the interest rate, even when I show them the original documents detailing the TAMI.

abshard · 06-10-2007, 07:09 PM

bump.....

FakeNick · 06-10-2007, 07:10 PM

gfy is an awesome place to get legal advice idiot

datatank · 06-10-2007, 07:15 PM

I thought it was 80% LTV to not have to pay PMI?

abshard · 06-10-2007, 07:19 PM

It is when you purchase a new loan but thats what my loan company told me after i tried to get the pmi removed

aflex · 06-10-2007, 07:20 PM

moral of the story.. if you can only put 10% down, get a 2nd mortgage to cover another 10%

ungratefulninja · 06-10-2007, 07:22 PM

Sounds like they're trying to fuck you. Unless your state is different.

abshard · 06-10-2007, 07:24 PM

Im wondering if i should hire a lawyer to send them a letter. But i dont know if what they are doing is legal in CA or not.

06-08-2007, 01:54 PM	#1
abshard Confirmed User Industry Role: Join Date: Jan 2002 Location: AZ Posts: 6,481	Any GFY lawyers on? Mortgage/PMI question I purchased a rental house in California a few years ago and put 10% down. This required me to have a PMI which is about $160/month. I was told by the loan broker that as soon as the house appreciated to where I had about 20-25% equity I could have the PMI taken off. Well that happened within less than 6 months. I called the mortgage company and they sent me a letter stating I had to wait 2 years before I got the house re appraised to get the PMI taken off. So I thought okay no problem I guess I will just wait 2 years. Now after the 2 year period I contacted them again and they sent me a letter again this time it says I need to have have a LTV of 70% but the kicker is new appraisals will not be accepted to lower the LTV to the required 70%. So basically what I have to do it send them a big check to get this $160/month fee taken off. Is there anything I can do? Is this legal for them to make me keep the PMI even though the house has almost doubled in price?

06-08-2007, 02:07 PM	#2
ModelPerfect Confirmed User Join Date: Nov 2003 Location: USA Posts: 2,862	Nope. They're trying to screw you. I'm in the same situation, only I opted for an "Tax Adjusted Mortgage Insurance", which basically meant they raise my interest rate for 2 years and pay the mortgage insurance themselves with the promise of lowering the interest rate after 2 years. This way, I get to claim the normally tax-non-deductible mortgage insurance as a deduction. But here I am at year 3+, and they refuse to lower the interest rate, even when I show them the original documents detailing the TAMI. __________________ Logan modelperfect [at] gmail.com http://www.modelperfect.com (Proudly hosted at www.webair.com )

06-10-2007, 07:10 PM	#4
FakeNick Confirmed User Join Date: May 2007 Posts: 739	gfy is an awesome place to get legal advice idiot __________________ this is my sig, it is the only one i have which is why it is mine

06-10-2007, 07:20 PM	#7
aflex Confirmed User Join Date: Oct 2002 Location: New Jersey - adaptweb at gmail.com Posts: 3,127	moral of the story.. if you can only put 10% down, get a 2nd mortgage to cover another 10% __________________ self made mothafucka. buying premium domains & developed sites with revenue/traffic -> adaptweb at gmail.com

06-10-2007, 07:09 PM	#3
abshard Confirmed User Industry Role: Join Date: Jan 2002 Location: AZ Posts: 6,481	bump.....

06-10-2007, 07:15 PM	#5
datatank Confirmed User Join Date: Aug 2004 Location: My dog is blacker than Tupac Posts: 5,471	I thought it was 80% LTV to not have to pay PMI?

06-10-2007, 07:19 PM	#6
abshard Confirmed User Industry Role: Join Date: Jan 2002 Location: AZ Posts: 6,481	It is when you purchase a new loan but thats what my loan company told me after i tried to get the pmi removed

06-10-2007, 07:22 PM	#8
ungratefulninja Confirmed User Join Date: Apr 2006 Posts: 682	Sounds like they're trying to fuck you. Unless your state is different.

06-10-2007, 07:24 PM	#9
abshard Confirmed User Industry Role: Join Date: Jan 2002 Location: AZ Posts: 6,481	Im wondering if i should hire a lawyer to send them a letter. But i dont know if what they are doing is legal in CA or not.