You didnt give anywhere to close enough information but I will try an answer this.
FHA PMI is charge 5 years regardless of LTV
Fannie Mae is charged at 80% until you refinance or pay down the original sells price. You cant refinace for a year or your sells price not appraised value is considered.
Freddie Mac has no seasoning so a week after closing if you have equity in your home you will have no PMI if you are at an 80% LTV.
These are all based on lenders requirements, they hate the 3rd but they cant do anything about the first option.
There are no laws, they are all federal loans, assuming we are talking first mortgages. Doesnt matter if you are in Texas or Florida. They can charge it under those conditions I set above.
I teach training on this and it takes me a 6 hour training I cant tell you in 1 minute what it means, your question is complex. But I gave you the best. Laws have nothing to do with if its charged. Thats the lenders issue. If you sign to pay it, you sign to pay it.
Seriously write me on email if you want this explained more, but it would take me hours to explain this. But I gave you enough. I think.
PMI stands for Private Mortgage Insurance, and it is to protect the lender in the event that you default on the loan, but it doesn’t release your financial obligation to the lender.
There are no laws regulating when PMI can be charged, unless it is an FHA loan.
100% financing loans, have PMI that is built into the loan, that is paid for by the lender.
In general, lenders charge PMI when you borrow more than 80% of the Loan-to-Value on your home, and will generally drop it when you have either made 1) A pre-determined number of payments or 2) when you have paid down enough of the mortgage from the original appraisal value, to generate 20% equity.
The myth, is that it is automatically dropped when the appraisal value of your home gives you 20% equity, and this is simply not true…and there are a ton of Loan Officers that constantly tell customers this and customers find out the hard way that it’s not that easy. Customers usually find out if they quickly achieve 20% equity, they must refinance in order to drop the PMI.
However, the lender reserves the right to charge PMI, even if you have 20% equity, if you have an extremely poor payment history.
financing_loans said:
Feb 03, 09 at 3:09 amYou didnt give anywhere to close enough information but I will try an answer this.
FHA PMI is charge 5 years regardless of LTV
Fannie Mae is charged at 80% until you refinance or pay down the original sells price. You cant refinace for a year or your sells price not appraised value is considered.
Freddie Mac has no seasoning so a week after closing if you have equity in your home you will have no PMI if you are at an 80% LTV.
These are all based on lenders requirements, they hate the 3rd but they cant do anything about the first option.
There are no laws, they are all federal loans, assuming we are talking first mortgages. Doesnt matter if you are in Texas or Florida. They can charge it under those conditions I set above.
I teach training on this and it takes me a 6 hour training I cant tell you in 1 minute what it means, your question is complex. But I gave you the best. Laws have nothing to do with if its charged. Thats the lenders issue. If you sign to pay it, you sign to pay it.
Seriously write me on email if you want this explained more, but it would take me hours to explain this. But I gave you enough. I think.
Mary_B said:
Feb 05, 09 at 2:43 pmPMI stands for Private Mortgage Insurance, and it is to protect the lender in the event that you default on the loan, but it doesn’t release your financial obligation to the lender.
There are no laws regulating when PMI can be charged, unless it is an FHA loan.
100% financing loans, have PMI that is built into the loan, that is paid for by the lender.
In general, lenders charge PMI when you borrow more than 80% of the Loan-to-Value on your home, and will generally drop it when you have either made 1) A pre-determined number of payments or 2) when you have paid down enough of the mortgage from the original appraisal value, to generate 20% equity.
The myth, is that it is automatically dropped when the appraisal value of your home gives you 20% equity, and this is simply not true…and there are a ton of Loan Officers that constantly tell customers this and customers find out the hard way that it’s not that easy. Customers usually find out if they quickly achieve 20% equity, they must refinance in order to drop the PMI.
However, the lender reserves the right to charge PMI, even if you have 20% equity, if you have an extremely poor payment history.