Comments on: A Side-Effect of the Subprime Mess: Rising PMI Rates http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Fri, 25 May 2012 02:50:51 +0000 hourly 1 http://wordpress.org/?v= By: dbrunt http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-363521 dbrunt Wed, 24 Sep 2008 14:36:53 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-363521 In Sept 2005, I got a 30year, fixed rate 5.75 loan at near 100% the value of the townhome that I was purchasing $190,000. I have excellent credit and a good debt to income ratio. I have put over $10,000 since then in improvements to the townhome, including finishing off an attic to a livable loft space. Long story short, with the subprime mess, the value of my place has gone down significantly. I haven't had it revalued, but its probably down around $170,000. My gripe is that I'm still paying close to $200/month for PMI on a LOW RISK loan. I will never reach 80/20 equity due to the lower home prices. If the market had not bottomed out, with the improvements that I have put in, my place would be worth around $220,000 and I would have had 80/20 equity by now. What are my alternatives at this point?!? In Sept 2005, I got a 30year, fixed rate 5.75 loan at near 100% the value of the townhome that I was purchasing $190,000. I have excellent credit and a good debt to income ratio.

I have put over $10,000 since then in improvements to the townhome, including finishing off an attic to a livable loft space.

Long story short, with the subprime mess, the value of my place has gone down significantly. I haven’t had it revalued, but its probably down around $170,000. My gripe is that I’m still paying close to $200/month for PMI on a LOW RISK loan. I will never reach 80/20 equity due to the lower home prices. If the market had not bottomed out, with the improvements that I have put in, my place would be worth around $220,000 and I would have had 80/20 equity by now.

What are my alternatives at this point?!?

]]> By: akerley http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-192952 akerley Wed, 19 Dec 2007 18:21:16 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-192952 there is a cheaper alternative...financed mortgage insurance. this is not available on 100% financing, but if a borrower can scrape up 5% down payment, this is a cheaper (also refundable) method of meeting the lender's need for mi, while at the same time making payments a bit more affordable. check with your mortgage lender for specific details, of course. there is a cheaper alternative…financed mortgage insurance. this is not available on 100% financing, but if a borrower can scrape up 5% down payment, this is a cheaper (also refundable) method of meeting the lender’s need for mi, while at the same time making payments a bit more affordable.
check with your mortgage lender for specific details, of course.

]]> By: Investment Property http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-192353 Investment Property Wed, 19 Dec 2007 00:25:03 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-192353 100% loan and no PMI !! Phew..the mortgage mess is not over yet! 100% loan and no PMI !!
Phew..the mortgage mess is not over yet!

]]> By: Roundup for week of 9 December 2007: Imminent ice edition at Mighty Bargain Hunter http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-190040 Roundup for week of 9 December 2007: Imminent ice edition at Mighty Bargain Hunter Sat, 15 Dec 2007 08:58:44 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-190040 [...] All Financial Matters discusses the private mortgage insurance side effect of the subprime fallout. [...] [...] All Financial Matters discusses the private mortgage insurance side effect of the subprime fallout. [...]

]]> By: dimes http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-188619 dimes Wed, 12 Dec 2007 04:43:59 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-188619 1) I have no sympathy for people who borrowed 100% of the home's value in a mortgage loan. They should have scrounged up at least a modest downpayment, especially if their credit scores are horrendous. 2) I have no sympathy for banks reckless enough to lend money to penniless people with wretched credit to buy a home they clearly cannot be bothered to save for. 3) Obviously, I'm an unsympathetic person :-) 1) I have no sympathy for people who borrowed 100% of the home’s value in a mortgage loan. They should have scrounged up at least a modest downpayment, especially if their credit scores are horrendous.

2) I have no sympathy for banks reckless enough to lend money to penniless people with wretched credit to buy a home they clearly cannot be bothered to save for.

3) Obviously, I’m an unsympathetic person :-)

]]> By: Dave http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-188457 Dave Tue, 11 Dec 2007 22:50:25 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-188457 You only have to pay PMI on conforming loans. If you have really good credit, single loan alt-a 90-100% financing does still exist. Obviously, still not a good idea in most cases. Depending when your loan was originated, currently the PMI has to be dropped automatically when your mortgage balance reaches 80% of the original value of your home. This could take a long time though, so if you make improvements or just get normal appreciation it might be worth it to call your lender, pay for an appraisal and get the PMI dropped if the new value gives you 80% equity. You only have to pay PMI on conforming loans. If you have really good credit, single loan alt-a 90-100% financing does still exist. Obviously, still not a good idea in most cases.

Depending when your loan was originated, currently the PMI has to be dropped automatically when your mortgage balance reaches 80% of the original value of your home. This could take a long time though, so if you make improvements or just get normal appreciation it might be worth it to call your lender, pay for an appraisal and get the PMI dropped if the new value gives you 80% equity.

]]> By: sam http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-188455 sam Tue, 11 Dec 2007 22:49:51 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-188455 For Iowahawk's take on the subprime mess, follow the link below. Raunchy, but hilarious. http://iowahawk.typepad.com/iowahawk/2007/12/please-dont-des.html For Iowahawk’s take on the subprime mess, follow the link below. Raunchy, but hilarious.

http://iowahawk.typepad.com/iowahawk/2007/12/please-dont-des.html

]]> By: Lord http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-188370 Lord Tue, 11 Dec 2007 19:16:52 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-188370 The way used to be 80/20 piggyback loans, but good luck finding them today. The way used to be 80/20 piggyback loans, but good luck finding them today.

]]> By: MP3 Download Music http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-188367 MP3 Download Music Tue, 11 Dec 2007 19:14:38 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-188367 [...] Administrator wrote an interesting post today onHere’s a quick excerptIt looks like (some) private mortgage insurance (PMI) rates are on the increase:. PMI Group Inc., a Walnut Creek, Calif., mortgage insurer, this fall stopped writing mortgage insurance for borrowers with credit scores below 620 who are … [...] [...] Administrator wrote an interesting post today onHere’s a quick excerptIt looks like (some) private mortgage insurance (PMI) rates are on the increase:. PMI Group Inc., a Walnut Creek, Calif., mortgage insurer, this fall stopped writing mortgage insurance for borrowers with credit scores below 620 who are … [...]

]]> By: Josh http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/comment-page-1/#comment-188357 Josh Tue, 11 Dec 2007 18:46:09 +0000 http://allfinancialmatters.com/2007/12/11/a-side-effect-of-the-subprime-mess-rising-pmi-rates/#comment-188357 I am one of the very few people that actually took out 100% loan on my house and don't pay any PMI at all! None!! That's a great deal for me because I double up on mortgage payments. That way my loan will be paid off in half the time. I am one of the very few people that actually took out 100% loan on my house and don’t pay any PMI at all! None!! That’s a great deal for me because I double up on mortgage payments. That way my loan will be paid off in half the time.

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