Projectz28

I refinanced my house 2 years ago. Unfortunately at the time the loan to value ration was 81%. I was told it must be under 80% to avoid paying a PMI. I have had to pay $35 a month for 1%.... About 6 months after I refinanced I called them and I was then told that once I had the PMI I was not eligable for PMI deletion for 24 months of good "account activity". Meaning no late payments and what not. So here I am 24 months later and I sent in a request for the PMI deletion. I just got a letter in the mail saying that in order to remove the PMI, I am responsible for paying $400 to have an appraisal on my property. And the loan to value ratio must now be below 75% instead of 80%. But if I buy a new home or refinance again its back to the 80% mark... what gives? Who in the hell made these rules up? Souns like a real scam if you ask me.

My question is why in gods name am I responsible for the appraisal fees? If I tell the mortgage company that I am below the ratio and they still want an appraisal shouldnt they be the ones to pay for it? I already know I am well below the mark. Why do I have to pay for their research?


Man I am really in the wrong business here...


anyone else ever run into anything like this?

CANTONRACER

Never heard of 75%...ever. That sounds fishy.

As for the reappraisal...that is only if you are trying to show you have gotten around the 80% rule by having your property increase in value.

If you are under 80% of the mortgage loan's original amount...I don't see why you would need to get an appraisal.

I would fight it because you are right.

myslowcamaro

check out wells fargo. decent rates, no out of pocket fees for closing (its all added into mortgage) and the big seller for me is they dont sell the mortgage. and if it is wells fargo who is doing that, report them to the main office, sounds like they are scamming you

Projectz28

Well thats just it. I was at %81 2 years ago. reguardless of wether or not my home gained value I have paid enough into the loan to beat the %80 mark. Now suddenly its changed to %75 and I have to prove it. I already waited the 2 years. I am not going to pay for it too. I'll let ya know what happens. I am calling them tomorrow to get the ball rolling and I will stand my ground. Id rather spend every single night of the year making collect calls to them than pay and independent apraiser to prove something I already know. If the mortgage company wants proof then they will pay it, if I am wrong then I will be more than happy to cover all the expenses.

Projectz28

BTW, Countrywide is the mortgage company.

5SPDCHK

It's in my original mortgage agreement that I must pay for an appraisal when I feel my home has increased in value (and I have paid down the principal) in order to have my PMI insurance removed. It's probably in yours too. It's nothing fishy or crazy. You want it removed, you have to prove your have 20% equity in your home. Even though you had 19% equity 2 years ago, who is to say that you haven't punched holes in the walls, torn out the plumbing and cut up the electrical wires??

Brian - I would LOVE to pay $35 for PMI insurance. Mine is $120/month.

I think you need to pull out your mortgage agreement and read it. I'm sure there is something in it that states you're responsible for the appraisal fee. Also - you can find someone to appraise it for under $400.

I'm not getting the 75% thing. I have never heard of such a thing. My guess, however, is that if you have been paying for 24 months since you were at 81%, you are probably beyond the 75% mark anyway...

Just my $.02.

CANTONRACER

He has passed the 80% marker on the original loan amount not even looking at increased home value from appraisal.

He does not have to get an appraisal for that.

Let's say his original loan amount was $100K...and he is now at $77K. There is no need for an appraisal because it is in black and white.

Now if the original loan amount was $100K and he is at $90K, but he feels the appraised value would be around $120K...that would warrant an appraisal.

5SPDCHK

How about if the house has decreased in value? I'm not saying Brian's has decreased but look at from the mortgage company's point of view. Maybe Brian's neighbor became a trash collector and the trash is lined right up to Brian's yard. Brian decided he didn't give a crap about his own home and threw a big party where his friend smashed in a few walls and tore out some of the plumbing. How about those big holes in the back yard that his friends thought would be fun to try to build a swimming pool in their drunken stupor.

Again, I'm not saying Brian is this person BUT the mortgage companies do not know this. I agree that PMI insurance is a rip off. We have been doing everything we can to increase the value of our home so we can eliminate the $120/month we pay for the crappy insurance. We still have to prove to the mortgage company that we have 20% equity when we do though.

I was actually thinking about this last night. Brian - perhaps you could refinance your mortgage all together and eliminate the PMI insurance while decreasing your interest rate? Two years ago the rates were coming down. They hit rock bottom last June and only started climbing up again early this year. I don't know what your rate is but you could easily refinance for a fixed rate of 5.5%. If you went with a 15 year mortgage, you could be in the 5% range. Just a thought...

CANTONRACER

Maybe it has decreased in value...but most places that is just not happen...I would think short of a sink hole in your backyard...know what I mean.

PMI is just another way to extort money out of people IMO. Let me lend you $100K, but I want $300K back in 1 month...what is that called, loan shark...but stretch it out over 30 years and I am a bank?

Sorta of subject...but I would highly doubt his home lost value. PMI is a little more free $$ to them.

Gary 95 Z28 M6

man, i would love to only pay $35 a month for pmi, mines $186!!!

Projectz28

I think the PMI is only $35 a month because I was at 81%. I bought this house a few years ago at an intrest rate of 7 3/8. I paid 145,000. In the first year I opened a line of credit and took out a few grand and built the garage mahal. When the intrest rates dropped 2 years ago I jumped all over it and refinanced at 5 1/4. At that time I rolled in the balance of the HELOC and the closing costs... I ended up borrowing right around the 145k again. At the time the mortgage company said I was at 81%. Obviously they already knew the value of my home had increased. Today the balance is around 136K. I didnt pay into the loan as much as I did the first year partly dur to the wedding payment Just take those numbers and I have beat the 80% with the value of 2 years ago.

I realize they dont know the value today by doing nothing, but its shouldt be my responsibility to pay for them to find out.

I know I have dumped a ton of money into this house bringing everything up to par. new electric and plumbing throough out. I rebuilt 3 rooms in this house. tore them to the studs and replaced everything. New siding, landscaping, ect.... I realize that the mortgage company does not know this. But a simple search on the internet will show that property values in this neighborhood have gone out the roof. I have had several building permits closed out in the past 2 years and they can find this out with a phone call to the township. A house 3 doors down from me is currently on the market for 310k.(different model than mine) I just dont know whay I have to prove anything.... The proof is in the original math from 2 years ago. I paid down the loan enough to be below 80%. Now they tell me it must be below 75%.

If I were to sell my house tomorrow I would put it up for 230 easy. And with a 750sq ft climate controled detached garage I would expect it to bring even more.

It is in my contract to pay for this. I just dont agree with it. I feel like I am being taken for a ride by them just to get more money. I am not going to use their apraiser for $400... I will search and find one who will do it for a case of beer.

Mortgage companies still suck! I know what my home is worth. they dont so they should pay. Its not my fault they didnt do their homework. If I am wrong and my home has decreased in value and I cant beat the 80% I will have no probelm with them sending me a bill...

CANTONRACER

Here is a question...how soon do you plan on moving?

If it is under 3 years...save the $400 and just pay the $35 a month...it will be a wash.

Projectz28

I thought about that actually. But the wife and I are planning on staying in this house for at least 5 more years. After that it looks like we will want to move. I like the idea of having insurance, but I know I can get coverage cheaper on my own. I just hate being locked into something that I dont want.

As of right now I am responsible for the costs and there is not much I can do about it. I am going to look for a licenced apraiser elsewhere. I am not going to pay $400 for the "prefered" apraiser from the mortgage company.

myslowcamaro

see if they let you use an outside but certified appraiser. i can probably hook you up with one i know if you both are interested.