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lismik
LIF Infant
Member since 9/10 311 total posts
Name:
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PMI Approval
So we have been approved for the mortgage and since we are only putting 17% down we have to pay PMI-
i am nervous we wontget approved for PMI-we are going through Astoria Federal-
Any advice on this would be great!
THanks.
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Posted 10/16/10 7:21 PM  |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: PMI Approval
I don't think its something you get approved for - I think they just add it on to the mortgage - we have FHA and thats what they did...
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| Posted 10/16/10 7:23 PM |
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lismik
LIF Infant
Member since 9/10 311 total posts
Name:
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Re: PMI Approval
well everything went through the underwriter and is fine but now it gets sent out to the insurance agent who the bank works with that has to approve us to get the PMI....
this is my understanding anyway
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| Posted 10/16/10 7:24 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: PMI Approval
Oh I don't know - they didn't tell us anything like that - I am sure you will get approve if thats the case you have already gone this far...
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| Posted 10/16/10 8:03 PM |
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LL514
LIF Adult
Member since 4/10 1901 total posts
Name:
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Re: PMI Approval
pmi is not something you get approved for. its insurance you have to pay to cover the banks ***
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| Posted 10/16/10 9:34 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: PMI Approval
Posted by lismik
So we have been approved for the mortgage and since we are only putting 17% down we have to pay PMI-
i am nervous we wontget approved for PMI-we are going through Astoria Federal-
Any advice on this would be great!
THanks.
Why don't you just put an extra 3% down so you can have PMI waived?
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| Posted 10/16/10 9:49 PM |
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LL514
LIF Adult
Member since 4/10 1901 total posts
Name:
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Re: PMI Approval
Posted by ave1024
Posted by lismik
So we have been approved for the mortgage and since we are only putting 17% down we have to pay PMI-
i am nervous we wontget approved for PMI-we are going through Astoria Federal-
Any advice on this would be great!
THanks.
Why don't you just put an extra 3% down so you can have PMI waived?
because maybe thats thousands of dollars they dont have
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| Posted 10/16/10 9:58 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: PMI Approval
Posted by LL514
Posted by ave1024
Posted by lismik
So we have been approved for the mortgage and since we are only putting 17% down we have to pay PMI-
i am nervous we wontget approved for PMI-we are going through Astoria Federal-
Any advice on this would be great!
THanks.
Why don't you just put an extra 3% down so you can have PMI waived?
because maybe thats thousands of dollars they dont have
I'd find a way to creatively finance the difference. Getting PMI removed is a PITA and if you are only 3% off... i'd push for the full 20%. PMI is pure profit for the bank.
3% of a 300k loan is only 9,000. Take out a 0% credit card for that 9,000 to avoid paying PMI. If that's not possible, i'd rather stay more liquid and put 10% down.
ETA: For the $50-100 a month or so the bank will charge you for PMI, i'll lend you the $9,000 and you can pay me the PMI monthly + principal.  That's like 13% interest! 
Message edited 10/16/2010 10:08:39 PM.
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| Posted 10/16/10 10:01 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: PMI Approval
Posted by ave1024
Posted by LL514
Posted by ave1024
Posted by lismik
So we have been approved for the mortgage and since we are only putting 17% down we have to pay PMI-
i am nervous we wontget approved for PMI-we are going through Astoria Federal-
Any advice on this would be great!
THanks.
Why don't you just put an extra 3% down so you can have PMI waived?
because maybe thats thousands of dollars they dont have
I'd find a way to creatively finance the difference. Getting PMI removed is a PITA and if you are only 3% off... i'd push for the full 20%. PMI is pure profit for the bank.
3% of a 300k loan is only 9,000. Take out a 0% credit card for that 9,000 to avoid paying PMI. If that's not possible, i'd rather stay more liquid and put 10% down.
ETA: For the $50-100 a month or so the bank will charge you for PMI, i'll lend you the $9,000 and you can pay me the PMI monthly + principal. That's like 13% interest!
Why is it hard to get rid of? We have an FHA and they said after 5 years we dont have to pay it (so long as 75% remains on principle) Is there something special you must do?
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| Posted 10/16/10 10:40 PM |
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LL514
LIF Adult
Member since 4/10 1901 total posts
Name:
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Re: PMI Approval
Posted by staceyums81
Posted by ave1024
Posted by LL514
Posted by ave1024
Posted by lismik
So we have been approved for the mortgage and since we are only putting 17% down we have to pay PMI-
i am nervous we wontget approved for PMI-we are going through Astoria Federal-
Any advice on this would be great!
THanks.
Why don't you just put an extra 3% down so you can have PMI waived?
because maybe thats thousands of dollars they dont have
I'd find a way to creatively finance the difference. Getting PMI removed is a PITA and if you are only 3% off... i'd push for the full 20%. PMI is pure profit for the bank.
3% of a 300k loan is only 9,000. Take out a 0% credit card for that 9,000 to avoid paying PMI. If that's not possible, i'd rather stay more liquid and put 10% down.
ETA: For the $50-100 a month or so the bank will charge you for PMI, i'll lend you the $9,000 and you can pay me the PMI monthly + principal. That's like 13% interest!
Why is it hard to get rid of? We have an FHA and they said after 5 years we dont have to pay it (so long as 75% remains on principle) Is there something special you must do?
i dont know how difficult it is but i do know that you have to request that it is removed. the bank will keep charging you for it even if you are 20% in, for almost a year after. my lawyer said to keep track of it so when we are close we know to call in a appraiser (if needed) and have it removed
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| Posted 10/16/10 10:50 PM |
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lismik
LIF Infant
Member since 9/10 311 total posts
Name:
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Re: PMI Approval
Apparantly it is something you have to get approved for (according to the mortgage processor we are working with) and I ahve heard of people not being approved for the PMI.
I wish we could put the full 20% down to avoid PMI but like someone said that is another 10K that we do not have (we dont want to use every cent we have to get this place lol). Thanks to the person who offered lol if it only it were that easy.
This whole process has been so stressful and so confusing. Everytime we think its almost over they want something else from us.
thanks for the support and information.
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| Posted 10/17/10 8:31 AM |
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LL514
LIF Adult
Member since 4/10 1901 total posts
Name:
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Re: PMI Approval
wow i didnt realize that you could be turned down for pmi! so if you didnt get approved for it and you cant put down 20% then you cant get the mortgage?
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| Posted 10/17/10 9:53 AM |
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bpmom
Feeling Blessed
Member since 6/07 2963 total posts
Name:
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Re: PMI Approval
i dont know how difficult it is but i do know that you have to request that it is removed. the bank will keep charging you for it even if you are 20% in, for almost a year after. my lawyer said to keep track of it so when we are close we know to call in a appraiser (if needed) and have it removed
We had PMI and it was a big PITA to get it taken off. We bought when the market was high and only put 5% down through a SONYMA program. Within two years we had done enough improvements and the market had turned a bit, so we were confident we had more than 20% equity in the house.
Our lender didn't care -- they knew we had locked in PMI for ten years (according to the mortgage schedule that's when we were due to own the 20% in the house).
We couldn't just get the house re-appraised -- we had to either refi (and pay the $7-8k for closing costs) or just pay down the mortgage.
We chose to pay down the mortgage, but even after we did that the lender STILL kept PMI on for two billing cycles.
 Their excuse was, "These things take time to come off." 
I know it's not easy to come up with the extra $9k to hit the 20% mark.....I feel your pain and they really do getcha anyway they can.
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| Posted 10/17/10 10:29 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: PMI Approval
We didn't need PMI, but I just wanted to say that we have an Astoria mortgage and we are really happy with them.
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| Posted 10/17/10 10:43 AM |
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