SimplySOLD
logo
Pages Navigation Menu
  • Home
  • Our Services
    • The SimplySOLD™ Team
      • N. Mark Kramoltz, J.D., GRI, CIPS
      • Aaron Soldevere
      • Lisa Brazsky, REALTOR ®
      • Catherine Saifer
    • Luxury Home Sellers
    • For Home Sellers
    • For Home Buyers
    • Short Sales
    • 5 Things Agents Won’t Tell You.
    • SimplySOLD Forms, Articles and Documents
  • Global Buyers Guide
    • Communities
      • Scottsdale
      • Phoenix
      • The East Valley
        • Ahwatukee/Foothills
        • Chandler/Ocotillo
        • Gilbert
        • Maricopa
        • Mesa
        • Queen Creek
        • Tempe
      • The West Valley
        • Avondale
        • Buckeye
        • Glendale
        • Goodyear
        • Litchfield Park
        • Peoria
        • Surprise
        • Tolleson
      • The Village of South Mountain
  • Our Listings
    • 7576 Calle Ochenta Siete
    • 3725 E Walker Road, Prescott, Az 856303
    • 8202 E Fairmont Ave, Scottsdale, 85251
    • 6801 E. Bloomfield Rd., Scottsdale, Az 85254
    • 580 W Ironwood Drive, Chandler, 85225
    • 14067 N 34th Way, Phoenix 85032
    • 4909 E Woodmere Fairway, #2005, Scottsdale 85251
    • 4732 N Dromedary Road, Phoenix, AZ 85018
    • 7720 S Heather Dr, Tempe, AZ 85284
    • 1738 E La Vieve Lane, Tempe, AZ 85284
    • 5237 E Windsor Ave, Phoenix, AZ 85008
    • 508 E Lydia Lane, Phoenix
    • 9466 N. 105th Place, Scottsdale.
    • 7115 N. 47th St, Paradise Valley, AZ 85253
    • 1432 E Colter St., Phoenix, 85014
    • 910 N. Center St, #4
    • 13952 E. Lupine Ave, Scottsdale, 85259
    • 6109 E Quail Track Drive, Scottsdale, AZ 85266
  • Home Search
  • Blog

Removal of Mortgage Insurance Premiums (Part 2)

Area: sqft BHK:  Price: 
City:  Location: 

In my last blog I wrote about the slim possibility of getting a refund of “private mortgage insurance”. Mortgage insurance is required by lenders when a down payment is less than 20%. Usually those payments are non-refundable unless the lender agrees otherwise at the time the loan is made.

During the boom years the question I often received was not about a refund, but how to get PMI payments removed from future payments. Generally, when a borrower achieves the required amount of equity (20% to 25%), a request for removal can be made to the lender. However, there are no rules, formulas or set guidelines to determine how a refund can be achieved.

Whatever the requirements, there will be a number of steps involved in the process. And even though many borrowers received a document in their closing package stating how to get the mortgage insurance removed, it is not unusual for lenders to change the qualifications when the request is made those many years later. So you have to contact your lender to get the latest rules.

The most difficult hurdle these days is having the requisite amount of equity. With values that have fallen up to 50% in some areas of the Phoenix metropolitan area, only a small percentage of borrowers may be able to apply to have PMI removed.

In the event you believe you have the requisite amount of equity, the lender will require that you purchase an appraisal or supply other evidence of value as proof. If an appraisal is specified, not all will suffice, as the lender will have certain valuation requirements and a list of approved appraisers whose values they will accept. Again you must follow your lender’s procedures – contact the lender before doing anything.

One more thing about MIP I forget to mention in Part 1 of this article: it can’t be removed from condominium loans, no matter what the loan-to-value ratio is. According to Mortgagee Letter 00-46, this is apparently because premiums on condo loans are not paid up front. Go to http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/00-46ml.doc for more info.

Finally, is there a way to get a refund of Mortgage Insurance Premiums (MIP) paid in the past on FHA loans directly from the FHA? In almost all circumstances, no. On December 8, 2004, the FHA terminated their mortgage insurance premium refund program. However, if you refinance into another FHA loan, the refund from the old premium may be applied toward the up-front premium required for the new loan. See Mortgagee Letter 2005-03 at http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/05-3ml.doc.

However, if the time to collect hasn’t expired, you may be entitled to a refund from a loan originated prior to December 2004. To find out, enter your info at http://www.hud.gov/offices/hsg/comp/refunds/ index.cfm.

Finally, don’t know if your loan is FHA or not? Go to http://www.makinghomeaffordable.gov/ loan_lookup.htm to look up your loan.

– N. Mark Kramoltz © 2015

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • More
  • Click to email this to a friend (Opens in new window)
  • Click to print (Opens in new window)

Related

Post Tagged with Arizona, Home Buying, Home Sales, mortgage, N. Mark Kramoltz, PMI
Leave a Comment
Click here to cancel reply.

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 208 other subscribers

Topics

  • Animal Stories (mostly Dogs in the Military) (17)
  • Arizona and Its Amenities (37)
  • Canada and Canadians (41)
  • Foreclosures + Short Sales (14)
  • Forms and Resources (3)
  • Global Buyers + Foreign Investment (64)
  • Home Buying (131)
  • Home Ownership (67)
  • Mortgages + Lending (58)
  • Preparing a Home for Sale (15)
  • Real Estate Facts & Figures (66)
  • Renters and Renting (22)
  • Selling Your Home (62)
  • Taxes (9)
  • The Attorney-Broker Advantage (19)
  • Title Insurance + Escrow (14)
  • Uncategorized (27)

Our Location:

2777 East Camelback Road
Suite 230
Phoenix, AZ 85016
480-675-0112

SimplySOLD

Click to open a larger map

Powered by Google Maps Widget

Connect with us!

Follow us on:
My Tweets

Blog Topics:

  • Animal Stories (mostly Dogs in the Military)
  • Arizona and Its Amenities
  • Canada and Canadians
  • Foreclosures + Short Sales
  • Forms and Resources
  • Global Buyers + Foreign Investment
  • Home Buying
  • Home Ownership
  • Mortgages + Lending
  • Preparing a Home for Sale
  • Real Estate Facts & Figures
  • Renters and Renting
  • Selling Your Home
  • Taxes
  • The Attorney-Broker Advantage
  • Title Insurance + Escrow
  • Uncategorized

Site Disclaimer:

Warning – The information on this web site is protected by the Copyright Laws of the United States, 17 U.S.C. Section 101 et seq. Reproduction and distribution of the information on this web site without the prior written consent of the owner is strictly prohibited and may subject the infringer to civil and criminal penalties. SimplySOLD™ believes the information presented on this web site is true, but hereby disclaims any and all liability with regard to its accuracy and completeness, including, but not limited to, direct, indirect and consequential damages.
Copyright © 2016, N. Mark Kramoltz, All Rights Reserved
loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.