Posted: Wed Oct 05, 2005 3:56 pm Post subject: When to cancel PMI
How and When Do I Cancel PMI?
jason12 Guest
Posted: Wed Oct 05, 2005 4:55 pm Post subject:
Hi Tim,
I think I can provide you with some information regarding this.
Actually your lender may automatically terminate your PMI or private mortgage insurance when your equity reaches 22% of the original value of your property, that is, the value at the time of taking the loan.
But you can always request your lender to cancel the PMI rather than waiting for him to cancel. When your equity reaches 20% of the original value of your property you put a request with your lender to cancel it. If your mortgage is owned by Fannie Mae, your PMI can be cancelled when the loan balance goes down to 75% of the current home value as established by a new appraisal. But the loan must be two years old and the mortgage payments should have been made in time.
You should know what your principal balance has to be so that your PMI can get cancelled. After that you can try to obtain an amortization schedule of your loan which helps you to know when you reach that point.
You can always give a call to your lender, if you are uncertain whether you are paying PMI. If they say yes, then ask them for the details on when and how to cancel it. It can be easily done by you only, without depending on others.
The few things which you should take care of are ?
You should have made your mortgage without failure for at least the last year.
You cannot have any liens on your property.
None should consider your loan as "high risk".
Hope this information will prove useful to you.
Regards,
Jason
Kimo Guest
Posted: Thu Sep 25, 2008 3:56 pm Post subject: PMI
I don't know, I been trying to cancel my PMI with GMAC and they have been giving me the run around. They make it so hard it's almost like they are annoyed that you are trying to get rid of your PMI. What can I do?
If you have paid 20% of the home loan, then you can ask the lender for the cancellation of PMI. If the lender does not agree then you can ask him why he is not canceling it.
However, there are various criteria on which PMI cancellation depends. To know about them click on the following link :
Posted: Mon Dec 22, 2008 7:02 pm Post subject: GMAC Robbing People on Unwarranted PMI Charges
Please enter GMAC and PMI into Google. It would not let me include a link in my post, but Google that and you will see for yourself all the complaints.
There is no question that GMAC is robbing people, myself included. My mortgage just turned 4 years old and I already have almost half of the principal paid. How in the world could GMAC justify continuing to charge me PMI? How could that possibly be legal. I read the Homeowners Insurance Act and it specifically says that the intent of the law is to prevent unfair PMI charges. From what I read, I am EXACTLY the type of borrower that this law is supposed to protect. So, unless the law is 100% ineffective, I should have some recourse.
Can you please advise us on what action we need to take to fight this?
Anyone who is still paying PMI to GMAC after you principal has been paid down to 78% and you meet the rest of the criteria (no late payments, etc), please email me at "dlcsays@comcast.net". Please put GMAC in the title of your email, so I don't end up deleting it. If we can get some kind of class action suit, I definitely want to pursue that. Per the law, GMAC should be charged $1000 per violation. I really just want the money back that they've stolen from me, but I sure wouldn't mind seeing them get fined as well. I'm going to file a complaint with the NJ Division of Banking and Insurance, but I'd rather pursue this on a national level, since they are in violation of a federal law.
Did you speak to the lender about the cancellation of PMI? Check out the mortgage docs and see if anything is mentioned regarding the cancellation of PMI. As far as I know, at 78% LTV, the lender must cancel the PMI coverage automatically.
Thanks. _________________ Good is the Enemy of Great.
Dana Guest
Posted: Tue Dec 23, 2008 3:02 pm Post subject:
Niicssm, thanks for the response. They are insisting I get an appraisal, which I do not think should be necessary. I've been requesting they drop the PMI since I paid the principal down to 80%, so about two years. I've made multiple requests. They are unbelievable! Also, my mortgage payment is such a small part of my income. Since I generally pay twice the amount that's due, and probably have the principal down to around 60% or less (I need to calculate and see where I'm at), there is simply no excuse for them to have not dropped it by now. I think it should have been dropped automatically. But without question it should have been dropped by request. IMO, they blatantly violate the HPA. Blatantly!
I think in order to cancel the PMI, you should agree for an appraisal. This appraisal will help the lender know the loan to value ratio. If the LTV comes around 78%, then I think the lender will cancel the PMI. _________________ Procrastination is the enemy of your financial sucess
ConnieF Guest
Posted: Wed Apr 08, 2009 7:33 pm Post subject: GMAC
I am fighting GMAC right now! I am on a accelerated payment program and met my 78% last March. I am scheduled for automatic cancellation this year April 2009. Pursuant to the Federal Law PMI should have been cancelled last year. Everytime I inquired, they just sent me letters pertaining to the 80? and wanted me to get an appraisal0 and suggested that I use one of their agencies. Now, my schedule says PMI should have been off my April 2009 statment, They charged me for April and will not remove PMI until May. I am now fighting for the one year that I overpaid.
Class action suit! Count me in.
My payments are current, I am paid ahead and I am not a high risk.
Rhonda Guest
Posted: Thu May 14, 2009 8:52 am Post subject: GMAC & PMI
Why don't you refinance with another lender and stop giving your business/money to GMAC?
smithsussane
