PMI Questions

[lvfnchs]

What is the name of your state? CT

Hi, I tried doing a search for PMI (private mortgage insurance) and came up empty. I'm in the process of refinancing and my LTV is 89%. I was looking at a 80/10/10, but don't feel comfortable because home equity lines of credit are so confusing and complicated, with the changing rates and termination fees and everything. So, it looks like I may go with PMI.

I currently don't have PMI because it's not an A Class loan, it's the B something kind... but refinancing they say I should have an A class because my credit is excellent.

So my question(s) is/are, is it really hard to get rid of PMI, is PMI really that bad, is it better to do the equity line? Thank you for your help.

 

[MortgageGuru]

Ask your lender about a 15 year balloon second mortgage. It's a little more each month on the payment but you will have something going towards principal whereas a HELOC does not. Your lender has already set it up for you to have a lower PMI rate by doing 89% vs. 90%. Either way it ultimately boils down to a few dollars difference.

 

[lvfnchs]

Thank you for the reply. It seems like everytime I talk to this guy his story changes. I don't know what I'm going to do now, but thank you for your time. I will probably go with the PMI but not positive yet.

 

[HomeGuru]

There is an abundance of info on PMI; search this website and the internet.

 

[lvfnchs]

Thanks again. I have tried searching this site and I come up empty every time when I serch PMI. Oh well!!!

 

[HomeGuru]

Thanks again. I have tried searching this site and I come up empty every time when I serch PMI. Oh well!!!

**A: hint- you must spell out the words as the search function does not recognize acronyms. Try again ususing "Private Mortgage Insurance".