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Home > PMI Frustrations - Part 2

PMI Frustrations - Part 2

January 12th, 2021 at 04:50 pm

I heard back from my mortgage lender. They won't automatically drop the PMI within 2 years of executing a refinance on my mortgage even if I have paid down to 78% of the home value (even if I don't account for appreciation). I can request and pay for an assessment to demonstrate that I have made substantial improvements (they apparently won't consider appreciation of home prices in the area), and even then it's not a guarantee that the assesor's report will make it happen. I am pissed! I have had nothing but trouble with this particular credit union through the whole process, and this is the last straw.

So, after filing taxes in a couple of months, I am doing another refinance as long as the interest rates remain low. This time, I will take out a 15 year mortgage with a different bank. I ran the numbers and it looks like if the mortgage rates remain the same as they are today, and I keep the same accelerated monthly payment amount as I am paying now, and presuming I won't have to pay PMI on this new refinance, I will pay $17k less in interest, and pay off a year earlier. It seems worth the hassle and the refi costs.

I hate debt for the years I spent in debt, and with the one remaining debt I have, I keep being reminded of how little power and freedom a debtor has. Debt is EVIL!

/rant over.

Posted in Debt, Updates, Mortgage | 6 Comments »

6 Responses to “PMI Frustrations - Part 2”

  1. Carol Says:
    January 12th, 2021 at 07:23 pm 1610479433
    1610479433

    They do sound like stinkers. Good plan to take your business elsewhere.

  2. Wink Says:
    January 12th, 2021 at 11:25 pm 1610493947
    1610493947

    I just don't understand this type of inflexibility from your lender. In the end they will just lose all the interest payments from you when you dump them!

  3. ceejay74 Says:
    January 12th, 2021 at 11:34 pm 1610494460
    1610494460

    Oof, I hear ya! I got the government version of PMI, and my broker told me it wouldn't be dropped for like 6 years but then it could if I was at 80% or less LTV. Well turns out that rule had changed recently and I was actually stuck with govt PMI for the life of the loan! So I finally did a refi, which was kind of crazy and stressful while in lockdown but AIM actually made it easier than any other refi I've ever gone through. Which is not to say it was easy, just easy compared with the absolute hell of past refis.

  4. ceejay74 Says:
    January 12th, 2021 at 11:41 pm 1610494897
    1610494897

    Also well said on that response about empathy--I didn't want to pile on but I appreciated the thoughtful balanced way you responded. It mirrored what I was thinking as well.

  5. ceejay74 Says:
    January 13th, 2021 at 04:31 pm 1610555510
    1610555510

    Yeah, check out AIMloan dot com. It stands for "American Internet Mortgage" which sounds kind of shady but they came highly recommended from some financial sites so I gave them a shot. Everything except the appraisal and signing was able to be handled virtually which was great. It took about 6 weeks total.

  6. rob62521 Says:
    January 15th, 2021 at 08:27 pm 1610742470
    1610742470

    I would be grumpy too. Sounds like they aren't very flexible or customer friendly.

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