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Refinancing and MIP

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Anonymous
Not applicable

Refinancing and MIP

Recently Wells Fargo send me a note with my monthly statement. Stating that there is no other way of getting rid of MIP but..., BY ONLY paying the 20% down. I have read that if I refinance and the difference between assessed value of the home and the refinanced amount is greater then 20% the MIP are removed. 

 

Please let me know what are the latest regulations on the matter. As well as..., To get the Assessed value you have to own the home for period greater then a year. Otherwise the purchased price would be used while refinancing?

 

Thank you. 

 

Message 1 of 10
9 REPLIES 9
ShanetheMortgageMan
Super Contributor

Re: Refinancing and MIP

Are you in a FHA or conventional loan?

 

Did you inquire about how to remove the mortgage insurance or did Wells Fargo just send you this note randomly?  The tone of the note is a little odd. 

Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 10
DallasLoanGuy
Super Contributor

Re: Refinancing and MIP

if you refinanced and the ltv was 80% or less, you would have a loan without pmi.

 

if this is fha, then you will have for 5yrs or until paid down to 78% (whichever is longer) 

 

Retired Lender
Message 3 of 10
Anonymous
Not applicable

Re: Refinancing and MIP

It is FHA loan..., originated in October 08. Smiley Sad . It was send randomly with my monthly statement, white 1/3 legal page of printed paper like the usual ads you get with your CC statement.    

 

If I knew I would have waited 2 more months. Any how, knowing how the Upfront MIP did change last year, I was thinking is there something new in this one. To my hazy understanding I would have to wait a  year and make some improvements (which in my case hopefully would be an easy task) the house had 10% equity on purchase and I don't think the assessed value would go down as it is in historic Ak-Sar-Ben area in Omaha.

 

Thank you

 

Message 4 of 10
Anonymous
Not applicable

Re: Refinancing and MIP

I thought with FHA it was based on the lona value of 78% or original loan before removing MIP.  In other words, doing work on the house and getting another assesment woulnd remove MIP.  Doing a refi I guess (even FHA) as long as the house came in at 80% or lesss LTV would get rid of it though.
Message 5 of 10
Anonymous
Not applicable

Re: Refinancing and MIP

It is FHA... and "which ever" would obviously be the 78% dew to the PMI that divert money from their purpose..., to pay the principle. Which lead to my question..., ways to beat the system, save money or use them in rational way. 

 

Thank you

 

PS. If we would to learning from Confucius...I wouldn't be asking the question. 

Message 6 of 10
Anonymous
Not applicable

Re: Refinancing and MIP

Thank you for your thoughts... Question remains... "Value"... Purchased or Assessed. and from their... what type Refinancing should I chose... details, details, details

 

Thank you

Message 7 of 10
ShanetheMortgageMan
Super Contributor

Re: Refinancing and MIP

The value is if you purchased the home and purchase price was no higher than the appraisal - then the purchase price would be used, if the appraisal came in lower, then the appraised value is the value used
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 8 of 10
Anonymous
Not applicable

Re: Refinancing and MIP

<<<The value is if you purchased the home and purchase price was no higher than the appraisal - then the purchase price would be used, if the appraisal came in lower, then the appraised value is the value used>>>

 

So Even if I do remodel and re-assess the home..., and the new value is 20+% over the purchased price... No monthly MIP reducing? Wells Fargo were right, do I get that right? Any suggestions?

 

Thank you

Message 9 of 10
Anonymous
Not applicable

Re: Refinancing and MIP

By assess, I assume you mean tax assesment by the city.  Tax assesments don;t mean anything in the mortgage business. 

 

To get the PMI removed, you would have to either do a new refi with a new appraisal or get it paid down to 78% LTV I believe.

 

 

Message 10 of 10
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