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- Thread starter Serial Midget
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@jonKranked
From the MA SEC site:
From the MA SEC site:
Situation 2 is what I'm talking about. I think I'll talk to the bank.
situation #2 is moot, because situation #1 applies.
you can petition to remove when you have 20% equity. it's automatically removed when you hit 22% equity.
Nice glad to see another Monkey embracing bike to work commuting. For safety I really like the Orb Horn/light its great to get the attention of cars if that is something you need.
https://orpland.com/
I had a run in with a cab door last year that was opened into the bike lane from an illegally parked cab. Even if I had the right to go fast where it happened just has way to much traffic to go fast.
Not sure you're reading it right. I could have 30% equity after an assessment shows my house is now worth more than what I paid, but my balance-to-loan will still be less than 20%....
Example: Loan was $235k, current balance is ~$200k. That's 15% equity based on loan/balance amount.
If house is now worth $270k, equity is now 26%. However, my balance-to-loan (ie original price) remains the same.
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not balance to loan, balance to purchase price.
It's the *lesser* of sale price or assessed value IIRC. Didn't you get a new appraisal when you refi'd recently?
that might be a state thing, because that lesser rule doesn't exist in PA.
Perhaps...
I'm no expert, but my agent who is says that Zillow has been damn near spot on in Portland as far as what people are willing to pay for a place.
Luckily I didn't have to go through anything. The bank I have my mortgage with does a "mortgage modification"; $1,000 fee, sign 1 sheet of paper and they switch to the new, lower rate effective the next billing cycle. No appraisal/closing costs, etc.
Google to the rescue! https://www.sec.state.ma.us/cis/cispmi/pmiidx.htm
tl;dr - you'll need to get an appraisal, and if the value gets you above the magic 20% equity line, lender may allow PMI to be dropped.
tl;dr - you'll need to get an appraisal, and if the value gets you above the magic 20% equity line, lender may allow PMI to be dropped.
That's the page I copied that text from, and what I'm saying (see post #42).
If an appraisal says my house is worth $XXXk and I have say 25% equity, I can get rid of it, DESPITE my balance-to-original sale price being less than 20% (which is how to get rid of PMI scenario 1), which I don't think JK is understanding.
the appraisal is only necessary if the market value increase is required to put him over 20%. based on his original post, it sounds like he's already at or above 20%.
no i get that, but if you are already at or above 20% equity against the original sale price, then the appraisal isn't necessary.
your original post said you're already close to 22% equity.
Nah son. I'm at ~15% assuming original sale price. See post #45.
That's why I'm saying I don't qualify for scenario 1 right now, but possibly scenario 2, assuming the appraisal comes in at the necessary value.
another way to look at it, if the principle balance of your mortgage is 80% or less of the original sale price, you don't need an appraisal.
I guess "close" is subjective.
Close in that a favorable property value change can get me there, but not so close in that I'm still a few years away from paying it down.
ok that's not what you said in your original post.
You know... this gets me thinking. I could probably get into a super-cheap 5/1 ARM at this point and save almost enough money to simply pay off the balance at the end of the 5 years (assuming rates go up).
Hmmm....
Hmmm....
I get that....see my above post. Still 2-3 years from paying it down that far.
Get the appraisal and if you're missing some $$ to hit 20% just pay down the principle by whatever the $$ is?
I also didn't say I was at the 22%. I should have just said the 15/16% range in my first post.
yea we're on the same page now. stop editing your posts with relevant information.
all this has gotten me curious, so i googled our place on zillow, according to them, our value has gone up $20k based on neighborhood comps alone, not counting the upgrades we've done (not that i'd expect them to increase the value by much if anything)
math is hard.
I was considering doing this actually, but I'm not sure the required cost will outweigh the savings. Say I need to pay $10-12k to get me to 20% and pay it now. I'll save about $120/mo be getting rid of PMI. However, if property values go the way they are going, I can hold out a year or so, wait (hope) the value goes up enough, and it gets eliminated anyway.
I understanding putting the $10-12k in now is only helping me, but I'd rather distribute that over the years and keep that money now for bikes, beer and hookers.
subdivide your lot, drop on a pre-fab, rent it.
Sitting in traffic on the BQE to get to LGA...fun times.
That looks cool.
This stretch is my risk point. A lot of which I can transit via sidewalk, but where I have no options. The other 11 miles are super easy.
Always use Wazy and tell the drive which route to go if you are in a regular cab.
Afternoon monkies, my boss thinks I'm amazing, I was shooting for amazeballs but you get what you get... now I'm off for the first ride on the green machine. Clever.
So confused at this moment. My wife just left with Lil Heathen for the next two weeks. Gonna miss that lil thing.
But I already have all my bike shit in the truck and plan on leaving it in until I see them.
The sadness and excitement are balanced out. I am at a loss. Need tacos.
But I already have all my bike shit in the truck and plan on leaving it in until I see them.
The sadness and excitement are balanced out. I am at a loss. Need tacos.
PMI is sometimes controlled by the loan itself. I think we will owe PMI for 8 years no matter our equity. The only way they remove it is if we're over 20% equity by home value. You can call in and request that, and they'll send you a letter which you can request an appraisal and they'll see if you've increased in value, or you can you just pay them money to get rid of PMI, which I don't fully understand why you would bother. OR, you can refinance with all the fees which might get you a lower interest rate and negate PMI.
As for home value, redfin is right on the money with what a realtor told us our home was worth. Zillow is $75k more expensive. We did put some money into our house, which redfin doesn't know about (but the realtor did), so I don't know how that plays in exactly.
As for us, we bought at the end of 2011, from a couple who needed to downsize due to illness, in a house that was poorly advertised. Turns out we're in the hottest suburb of boston, and people want to live here now.
As for home value, redfin is right on the money with what a realtor told us our home was worth. Zillow is $75k more expensive. We did put some money into our house, which redfin doesn't know about (but the realtor did), so I don't know how that plays in exactly.
As for us, we bought at the end of 2011, from a couple who needed to downsize due to illness, in a house that was poorly advertised. Turns out we're in the hottest suburb of boston, and people want to live here now.
these sentences in conjunction make no sense.
also, i'm pretty sure it's illegal to require PMI for a specific period of time.