cancel
Showing results for 
Search instead for 
Did you mean: 

Effect of Dropping Existing Mortgage PMI on FICO Mortgage Scores?

eileensnow
Frequent Contributor

Effect of Dropping Existing Mortgage PMI on FICO Mortgage Scores?

Hello, my boyfriend and I are planning to apply for a construction loan in February or so for a spring build.  Our mortgage scores are marginal right now: low middle will be 690 to 700.  I'm doing everything I can to bolster it- using AZEO, paying all revolvers twice a month, etc.

 

Our current mortgage has PMI, but we are now elgible to drop it with a Broker's Opinion.  It will cost $150, and will save us about $400 a month until we sell.   Assuming a May close on the sale of our current home, that means we could save about $2500 in PMI if it gets dropped in November.  HOWEVER, I'm scared that if that happens that somehow our mortgage and how it reports via the CRA will get all screwed up and somehow our mortgage scores will tank.  Does anyone have experience in what happens to how a mortgage reports once PMI is dropped?

 

Thanks in advance, you guys are a wealth of knowledge.

3 REPLIES 3
JVille
Valued Contributor

Re: Effect of Dropping Existing Mortgage PMI on FICO Mortgage Scores?

This is just dropping PMI and not a refi with a new loan. I can see a downside to this. Seems reasonable and I’d do it in a heartbeat!
Message 2 of 4
NC_Mtg_Loaner
Valued Contributor

Re: Effect of Dropping Existing Mortgage PMI on FICO Mortgage Scores?

^I am pretty certain J'Ville means that he CAN'T see a downside to this........unless he IS the MI Company.

 

;-)

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 3 of 4
JVille
Valued Contributor

Re: Effect of Dropping Existing Mortgage PMI on FICO Mortgage Scores?

I’m a bit confused why someone would think getting rid of MI on an existing loan would Lower or affect in any way a FICO score???? Maybe I have completely misunderstood what the OP meant by this question?
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.