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sarms622 · Joined: 29 Oct 2008 Posts: 1 1.60 Dollars($)

I have been paying PMI for 2 years now, the condos in my complex are now selling for $25,000-$40,000 less then what I paid for. Will I be able to get rid of the PMI? I was told after 2 years, I would have enough equity in there to get rid of it but I'm afarid it will be appraised a lot less now since people got over there heads are selling them for so low.

apexoffice · Posted: Wed Oct 29, 2008 10:18 am Post subject:

I think you may be paying PMI for quite a while. Most lenders require that you have PMI until your loan to value ratio is less than 80%. Back during the boom of the market, it was common to only need it for a couple of years because real estate was appreciating so fast. In fact, I made it a point to contact people within a couple of years after purchase to offer appraisal services for PMI removal. Not so much anymore.

joe · Posted: Wed Oct 29, 2008 11:47 am Post subject: PMI

Benjamin is correct. 20% of the current home value is what you need in equity to request PMI be removed. Try paying $150 more on your monthly condo payment each month. Also look into a biweekly payment program, so that you can build up your equity faster. Good Luck!

jameshogg · Posted: Thu Oct 30, 2008 11:08 pm Post subject:

Hi sarms!

I agree with both Benjamin and Joe. I think you will have to pay PMI for some more time. Moreover you have mentioned that the price of the houses in your area are falling. So that may also go against you and your house won't be appraised much.

Thanks.

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