Posted by Elizabeth Soliday on 9/15/06 10:06am
Msg #146314

Closing on our house today!

Good morning everyone, I just thought I'd share my excitement, we are closing on our house today. After 9 months of looking out here on the Oregon Coast, we finally found something and we're moving in soon! I love home improvements so it was hard to live in a rental for so long. Have a great day.

Reply by ck_KY on 9/15/06 10:12am
Msg #146315

Re: Congradulations..

We build our new home last year and there's nothing like putting your own personal touch on everything! Problem is, I'm ready to do some re-decorating already and my husband thinks I'm crazy. Have fun!

Reply by christiSocal on 9/15/06 2:47pm
Msg #146387

ck_KY Can I pick your brain?

We are looking into building our own. But I'd really like to hear pros and cons from someone whos done it. Did all work out as planned? Did costs go over budget? TIA!

Reply by JanelWI on 9/15/06 10:36am
Msg #146319

I visited the Oregon Coast in July. What a breathtaking part of the state. Best wishes to you! Iwill be closing on a house in October! My first home purchase. I am excited!

Reply by Elizabeth Soliday on 9/15/06 10:45am
Msg #146323

PMI question

I have to pay PMI with this loan and I have read about having the lender write a disclosure as to when it can be removed.

We are going to make some significant upgrades to the house (which was priced below market value already) and I was wondering, do they have to remove the PMI when you have 20% equity, or is there a way they can make you pay down the principle even if you get an appraisal that shows 20% above the value of the house?

I know this is a bit beyond a notary question, but thought some intelligent mind out there may know.

Reply by Kate/CA on 9/15/06 10:54am
Msg #146327

Re: PMI question

I have heard other borrowers threaten to take the lender to court to get them to drop it.
Others just got an appraisal and it was fine. I would question them at the time you are doing it to see if they have a apprasier that they would like you to use, then what can they say if it comes in higher than the bid.

When I bought this house we hadn't sold our other. Our loan officer got us a 80/20 loan so we wouldn't have to worry with the PMI. 3 weeks later we sold the other house, paid off the 20. With a 80/20 loan you can always refi down the road when you have the 20 equity and not have to ever have paid the PMI.

Where in OR are you. I use to live in Salem, loved it there. I have relative all up and down the coast. My aunt built a house in Newport with a few of the bay, beautiful.

Reply by Charm_AL on 9/15/06 11:13am
Msg #146342

Re: PMI question

Private mortgage insurance enables lenders to accept lower down payments than they would normally accept. In effect, mortgage insurance provides what the equity of a higher down payment would provide to cover a lender’s losses in the unfortunate event of foreclosure.

Premiums are based on the amount and terms of the mortgage and will vary according to loan-to-value ratio, type of loan, and depth of coverage required by the lender.

Payment schedules for private mortgage insurance premiums may vary, depending on your lender. As part of Federal Truth-In-Lending regulations, lenders must identify all costs, including private mortgage insurance premiums, at the time of the loan application and when the loan actually closes.

Yes, is the answer to your question, you can request a cancellation once your appraisel proves that value is higher than it was when you got the loan. If you got coverage on 20% of the loan, it (the appraisel) needs to come in with that % raise or more.
hope that helps.

Reply by Teddog/CO on 9/15/06 10:50am
Msg #146325

Congrad's Elizabeth!! Exciting is'nt it. And welcome to the "Land of Perpetual debt and Fixin-Up" LOL There's nothing like your very own home.

Best of luck to you and the family.

Reply by Bonnie_CO on 9/15/06 11:00am
Msg #146335

Congratulations! Hope you have many happy years there!

Reply by cassiewi on 9/15/06 11:02am
Msg #146337

Congrats from me as well! n/m

Reply by JM_NY on 9/15/06 12:24pm
Msg #146367

Re: Good Luck and many happy years. n/m

Reply by Elizabeth Soliday on 9/15/06 12:30pm
Msg #146370

I just talked to my LO, he said that they don't use appraisals to show the increase in equity for PMI purposes anymore, but if we put on an addition, the PMI company will be involved in the appraising to see if it goes over the 20% (I don't know if that would be fair, but I guess I don't have too much choice, it was a VA loan).


Thanks for the input.

Reply by LIZ/VA on 9/15/06 10:02pm
Msg #146452

So happy for you and yours. Enjoy, and remember what you can't get done today, will wait for you, so don't try and kill yourself getting everything just the way you want it. Take time and enjoy your family and your new surroundings. May you enjoy many blessings in your new home. Congratulations.

Reply by Joan_OH on 9/16/06 1:45pm
Msg #146534

VA MIP is different from PMI, I believe

VA & FHA MIP is a different animal than PMI. I don't think it can be removed with an appraisel like you can sometimes with PMI. I know when we had our FHA first home, the PMI was not removeable, but refundable when we either sold or refinanced with a non-FHA product. It's been 20 years for me, so things might have changed.

Joan-OH

Reply by PAW on 9/16/06 9:04pm
Msg #146562

If you have a VA/FHA loan, you probably are NOT paying PMI (Private Mortgage Insurance), but MIP, which is Mortgage Insurance Premium. The difference is that PMI is a lender requirement (which may be waived by the lender) when the LTV (Loan To Value ratio) is 80% or higher. To remove PMI, all you have to do is lower the LTV below 80%. This can sometimes be done by a simple re-appraisal that shows the value of the house has increased some, such that the LTV is below 80%.

MIP, on the other hand, is a guarantee by the government to the lender that the lender will receive a certain percentage of the loan, even if the borrowers default. MIP typically has two parts: an upfront premium paid at closing, and a monthly payment for a period of time. It is not based on the LTV. The biggest difference is that the MIP guarantees the loan for the entire life of the loan. PMI is insurance protection for the amount over the 80% of value.