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 Posted: Thu May 13, 2010 7:24 pm Post subject: I am so steamed right now. My LTV is under 78% and I wrote |
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| and I wrote to PNC and told them that after my May payment please do not take any more money for PMI. Please terminate. I have been on an Equity Accelerator programfor the last 8 years and it has reduced my 30 year mortgage, so far by 3 years. PNC says that this will terminate in April 2014 because of the initial amortrization schedule says i am SCHEDULED to be at 78% in April 2014 OR I can pay their appraiser $400 do appraisal. Whats is the deal. I have paid ahead and they are going to make me pay another 3 years another $3600 . Is there any provision in Homeowners Act for those who have made extra payments?? What should I do. This is BS. Please advise.. |
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srooney
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| Posted: Fri May 14, 2010 3:10 am Post subject: |
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Not exactly an auto insurance question, but, yes, in order to demand an end to PMI at this point, you have to prove the LTV of your property.
Lenders have all sorts of crazy "rules" about getting to the <80% LTV ratio without an appraisal. If you're trying to get there with a combination of increased property value and decreased loan balance, it usually requires an appraisal.
But the law is clear, once there, they have to drop the PMI. If the actual loan principal is now less than 80% of the original loan balance, to require an appraisal is uncalled for.
Normally you cannot use your own appraiser. Use one not on their list, and they may not have to accept the estimate, and you'll have paid money for nothing. You should contact the lender and get a list of their approved property appraisers (although it appears you have inquired about this and were told the cost is $400). There should be language in your loan documents about this.
The appraiser is not supposed to be biased in their favor, he could lose his license as a result. But that doesn't mean his appraisal will match your expectations.
Sorry your "Equity Accelerator" has not performed as some others might have. Each lender uses different formulas, and a true biweekly loan payment program that reamortizes unpaid principal with each payment would take about 8-9 years off the life of a 30 year mortgage -- perhaps more than just 3 in the first 8 years.
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MaxHerr
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| Posted: Fri May 14, 2010 1:27 pm Post subject: pmi |
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When I queried info about PMI issues it brought me to this site. I assumed it was for residental insurance issues not auto.
Thanks for your information. |
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srooney
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| Posted: Fri May 14, 2010 6:42 pm Post subject: |
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Oh, no -- you're in the right place . . . you just posted the thread on the Auto Insurance forum, instead of the Home Insurance forum -- a common occurrence. No big deal. Bring on all your questions!
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CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
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MaxHerr
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| Posted: Fri May 14, 2010 6:50 pm Post subject: Replacement Cost |
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| Here is a really short answer. The banks know nothing about insurance. The agent needs to ensure the property is insured for full replacement cost. The banks always forget that dirt does not burn. A proper explaination and product insuring your asset for replacement cost will fix the problem. I have seen plenty of agents insure homes for purchase price and not replacement cost. |
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jbmtx74
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| Posted: Fri May 14, 2010 8:07 pm Post subject: |
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Nothing wrong with anything jbmtx74 has said. Just doesn't have anything to do with PMI, which is protection for the lender if they lose anything when a borrower defaults on a loan, paid for by the borrower.
The equivalent of that equation in life insurance would be:
I'm your agent. I sell you a life insurance policy. You pay the premium, and must make me the beneficiary until you have at least 20% equity in your policy. If you die before then, I get your death benefit.
Sound legit? Of course not. So why do we allow it for home loans? Because no one understands it that way. Well, almost no one.
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CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
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MaxHerr
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