Legal Question in Insurance Law in Pennsylvania

PMI Mortgage Insurance

We would like to help my son of South Park, Pa 15129 eliminate a Payment for PMI of over $200 a month. He was told by Caldwell Bankers that because he was late with his last payment, that he would have to wait for one year and then pay 25% of his $60,000 mortgage. Can you please help us with this matter? Thanks


Asked on 3/24/07, 5:01 pm

2 Answers from Attorneys
Robert R. Groezinger GroezingerLaw P.C.

Re: PMI Mortgage Insurance

PMI is funny. Sometimes when you hit 78% of the loan you can call them have it cancelled..other times it needs to be no lates in in year prior to the payoff of PMI. READ the agreement...it it the only way that you will know for sure...the broker has no clue other than what usually happens but usually depends on your pmi agreement.

Good Luck

RRG

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Answered on 4/04/07, 10:19 pm
Kevin Connolly Kevin J. Connolly

Re: PMI Mortgage Insurance

Mr. Grozinger's response is spot on. Another observation though: If your son does not qualify to take off the PMI, he should still be able to qualify to re-fi as a conventional borrower. An 80% loan-to-value ration plus a credit score of 600+ will generally get him through the process if he has enough income to cover his debt service. He may pay slightly more than prime borrowers (recent housing derogs are killers to the credit score). And if he does not have at least 20% equity in the house, it's unlikely he can get the PMI off or refi.

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Answered on 4/05/07, 10:21 am


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