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He Improved The House |
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Edith, hoping that you may be of help. My son bought a run-down house last November. Other houses in the sub-division are selling for half again what he paid. He has since completed a lot of work and the house is now at par with the others. As we understand it private mortgage insurance has to be paid until he has 20 percent equity in the house. We think he should be able to have the house reappraised now and show 20 percent equity.His mortgage company told him they would not accept that and the only way to remove the PMI payment is to refinance. They are spanking him over $130 a month for PMI. All I could suggest was to ask his lawyer that he used for the closing. |
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I don't know what kind of mortgage your son has and that might make a difference. With some loans there’s no way to drop private mortgage insurance coverage until two years, or sometimes even five years, have passed. But for most new mortgages, mortgage insurance can indeed be dropped when equity reaches 20 or 22 percent. The catch is that the required amount is usually figured from the original appraisal or a new one, whichever is lower, so that lets your son out. Sorry about that. |
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Edith
Originally published on June 6, 2006 |
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