Paying principle only on mortgage pymts to get PMI removed

[belljos1222]

Hello,

 

I'm trying to get rid of PMI. Can I pay my monthly mortgage payment and request it all go towards the principle in order to get rid of PMI?

[tiggerlgh]

No you have to PITI (Principal, interest, taxes and insurance) monthly as applicable to your loan. You can pay extra and tell them to apply it to principal.

[belljos1222]

Not the words I want to see 😡, how can I get out of it asap?

[tiggerlgh]

Not the words I want to see , how can I get out of it asap?

How close are you to getting it removed? If you think your house has gone up in value enough or you have made major improvements you may be able to pay for an appraisal through your servicer to see if they think the value has increased enough to have it removed .


If not as I said before pay more than minimum every month and have it go to principal. That will also save you on interest.

[belljos1222]

Does the appraisal have to be  through the servicer? I pay more and put it towards principle.

Edited August 19, 2020 by belljos1222

[cv91915]

Just to double check, is this PMI or MIP?

[tiggerlgh]

Does the appraisal have to be  through the servicer? I pay more and put it towards principle.

Each servicer/investor has their own rules on that. But most want an independent assessment. Call your servicer to discuss.

[tiggerlgh]

Just to double check, is this PMI or MIP?

Good point, and if it’s MIP when was the loan originated?

[belljos1222]

It's PMI

[CTSoxFan]

I would also make sure that the lender will remove PMI once you get to 20% equity without you having to do a re-fi.  I recall reading a post recently where a lender wouldn't remove PMI even after getting to the 20% equity threshold, they told him/her they'd have to do a re-fi...it was Wells Fargo if I recall correctly.

[tiggerlgh]

I would also make sure that the lender will remove PMI once you get to 20% equity without you having to do a re-fi.  I recall reading a post recently where a lender wouldn't remove PMI even after getting to the 20% equity threshold, they told him/her they'd have to do a re-fi...it was Wells Fargo if I recall correctly.

Wells removes it then. It may have been a FHA loan in question, or something similar. They removed my first loan right when it hit 80%.

[CTSoxFan]

2 hours ago, tiggerlgh said:

Wells removes it then. It may have been a FHA loan in question, or something similar. They removed my first loan right when it hit 80%.

I couldn't find the post, but I do recall them saying it was not FHA, but my memory is a bit foggy (obviously,..).  In any case, worth just double checking to be sure.

[belljos1222]

Just refinanced.

[tiggerlgh]

Just refinanced.

What’s your loan to value?

[belljos1222]

I's tryin like heck to find out if my loan servicer allows it. It is Lakeview. They don't answer the phone

[cv91915]

11 hours ago, belljos1222 said:

I's tryin like heck to find out if my loan servicer allows it. It is Lakeview. They don't answer the phone

Is this the same "Lakeview"?

 

https://lakeviewloanservicing.com/questions/

 

If so, it appears that they may contract out your servicing to Loan Care.

[tiggerlgh]

If you just refinanced I doubt your value has changed. What is your LTV and his close to 80% are you?

[belljos1222]

The value is more than the loan

[tiggerlgh]

The value is more than the loan

That’s not helpful. What’s the loan amount and what did they value it at. We are trying to help.

[belljos1222]

I was not trying to be difficult. I'm working. The loan was at 189,000. The land and house is 208,000

[tiggerlgh]

I was not trying to be difficult. I'm working. The loan was at 189,000. The land and house is 208,000

You will have to pay down about another 10% before PMI will be removed.