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Finally got rid of PMI.
Old 10-13-2010, 12:46 PM   #1
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Finally got rid of PMI.

Yep. After 7 sickening years of paying PMI/MIP (mortgate insurance), we're all done paying for that. Just feel like I need to celebrate, even though it was "only" about $50+ at the start of the loan, down to $42/mo. lately.

Bought the house in '03. I thought after a few years I/we could whittle down the loan enough to get out of it. Heard you could use new appraisals, but after 9 mos. Chase bought the loan and they don't allow new appraisals as a basis for eliminating PMI. Heard that you could do 80/20 or 80/10/10 or whatever combo. of loans to get rid of the PMI, but the 2nd/3rd loan interest rate ended up costing more than the PMI did. So, didn't go that route. It was a 5/1 ARM, so, then the interest rate racheted up after a couple years. The extra 2% ended up being way more than PMI, so I kindof forgot about it/blew it off. Behavioral economics or something? Mental accounting?

The thought of me paying an insurance to cover the lender continued to irk me. So, this spring, I called Chase and they say loan has to be under 80% LTV. I still had a couple grand to go, so, I put that toward the loan this summer. Called again asking to drop PMI, nope, has to be under 78% LTV, and then in their written letter, they put a dollar amount that doesn't correspond to either percentage of the original loan amount. The remaining principal must be under "this". This ended up being about $600 less than the remaining loan amount. Odd. So, pay that additional two months ago. I thought the 'remove-PMI' genie would appear, but I had to call 'em again. They finally agree to drop PMI since it's under the "mystery number" and it's been 5 years of paying premiums (another magic number, to me, and according to Chase is a law, somewhere).

So, 2-3 weeks ago, they said they'd submit a new escrow analysis, which I've yet to see. Haven't made a payment to get a new statement to see if they still deducted PMI from escrow. Hopefully our loan makes it "through the gauntlet" and gets the PMI dropped. $42/mo. doesn't seem like big bucks, but $504/year does. Like I said, for nothing, I don't see any benefit from paying it. I'd rather blow it on Sam Adams or Summit beer.

It'll be a relief or one less irritant. Getting things like this removed/resolved shouldn't be this complicated. Don't know who else to "brag" to. Last check, my credit score was just under 800, hers is over 800.


"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
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Old 10-13-2010, 12:55 PM   #2
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Chase must have changed their rules since in 1999 we paid for a new appraisal and got rid of PMI because of appreciation in the value of our house (after all house values only go up). Best 400 we ever spent.

Glad you got rid of yours.

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Old 10-13-2010, 12:58 PM   #3
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Originally Posted by CCdaCE View Post
Don't know who else to "brag" to. Last check, my credit score was just under 800, hers is over 800.

This is as good a place as any to brag about this. Well done
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Old 10-13-2010, 01:11 PM   #4
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I had PMI on my very first loan that had a 'very low' interest rate of 11.5%... and it was a few percent lower than you could get in the private market at the time...

Paid it down a few years and the value went up... called to get rid of PMI... well, my docs said I had to pay it as long as I had the loan .. SOOO, refied to a low rate of 9% and got rid of it...

Since I just bought my second house... we put down the 20% to not have PMI AND paid the stupid fee so I would not have an escrow...
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