by Guest » Mon Nov 25, 2013 07:02 am
Hello,
For those of us who purchased a house before getting enlightened with FPU (purchased house right before FPU) and therefore have a 30 year mortgage with PMI as part of the escrow should we consider the debt a BS2 debt or a BS6 mortgage?
We just got our escrow statement and it showed that on year 26 of our 30 year mortgage we have 83% loan to value. Of course to get the auto release of the PMI we have to either pay the mortgage down to 78% or at 80% loan to value we can get an appraisal and request in writing that PMI get removed.
My husband thinks that PMI is a debt separate from the mortgage and therefore we should stop the funds from baby steps 4 & 5 to hyper focus on paying the mortgage down to below 80%. (This would take about a year to do under his plan) His rationale is that PMI only benefits the mortgage company and we pay $153 extra each month for it and it needs to go.
I think PMI is part of the mortgage package we signed on to which is BS6 and if we throw all our snowflakes and snowballs of income that come our way while keeping BS funds for 4, 5 and 6 in place we are not sacrificing our future savings/retirement to get the mortgage down to lose PMI. This will probably take two years to get out of the PMI doing it my way. At least a year and a half. PMI is not a set debt amount in my thinking, but a target value of our mortgage that must get paid down and paying down the mortgage is BS6.
Has any one else run into this issue? I would be interested in your thoughts and ideas? Re-fi to a 15 year will not make sense until we are below the 80% Loan to value mark as most lenders do not consider the re-fi unless you are 80% LTV unless you get PMI...
Thanks
For those of us who purchased a house before getting enlightened with FPU (purchased house right before FPU) and therefore have a 30 year mortgage with PMI as part of the escrow should we consider the debt a BS2 debt or a BS6 mortgage?
We just got our escrow statement and it showed that on year 26 of our 30 year mortgage we have 83% loan to value. Of course to get the auto release of the PMI we have to either pay the mortgage down to 78% or at 80% loan to value we can get an appraisal and request in writing that PMI get removed.
My husband thinks that PMI is a debt separate from the mortgage and therefore we should stop the funds from baby steps 4 & 5 to hyper focus on paying the mortgage down to below 80%. (This would take about a year to do under his plan) His rationale is that PMI only benefits the mortgage company and we pay $153 extra each month for it and it needs to go.
I think PMI is part of the mortgage package we signed on to which is BS6 and if we throw all our snowflakes and snowballs of income that come our way while keeping BS funds for 4, 5 and 6 in place we are not sacrificing our future savings/retirement to get the mortgage down to lose PMI. This will probably take two years to get out of the PMI doing it my way. At least a year and a half. PMI is not a set debt amount in my thinking, but a target value of our mortgage that must get paid down and paying down the mortgage is BS6.
Has any one else run into this issue? I would be interested in your thoughts and ideas? Re-fi to a 15 year will not make sense until we are below the 80% Loan to value mark as most lenders do not consider the re-fi unless you are 80% LTV unless you get PMI...
Thanks
Posted: Tue Nov 26, 2013 12:25 pm Post Subject:
My husband thinks that PMI is a debt separate from the mortgage
And he probably will still believe it when you are being thrown out of your home after the foreclosure sale.Please ask your husband how the PMI premium will be paid when you fail to send the full mortgage payment to the lender each month.
PMI is not a set debt amount in my thinking
Really? Try and pay off your mortgage today and see if you get much of a refund of the PMI amount. And folks who have FHA mortgages are in even worse shape because that can never be removed from their government-insured loans."BS2 or BS6" . . . what difference does it make? PMI is still BS that enriches only the banking community.
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