mortgage question. - Striper Talk Striped Bass Fishing, Surfcasting, Boating

Jackbass · 07-19-2011, 07:59 AM

It was my understanding when I purchased my multi family in 2006. That I would not require a reappraisal to eliminate PMI. I have gotten the building to a point where I am now 80/20 LTV based on the initial appraisal and want to eliminate PMI prior to purchasing another home (I live there now) I have always accelerated my payments and never been late. The mortgage company is now telling me I need to re-appraise? With the downturn in property values I know I will be lucky to be any where near 80/20.

Just wondering if anyone has any experience with this? I feel as though I am being penalized for being a good customer.

Bronko · 07-19-2011, 08:14 AM

You my friend are most likely out of luck. Unfortunately your fate rests on an appraisal that as you said, probably won't meet your 80/20 needs to drop your pmi. A good customer who pays on time and pays down extra principal with each payment will probably get bit in the as* by the current housing market. Rather than throw $350-$500 out the window on a reappraisal, I would wait another 6 months to see if there is a slight bump in the market, it will also knock another 6+ months of payments off your nut.

If you have a few extra bucks or don't mind gambling and really want to see what your house appraises at go for it. Heck I have seen crazier things, you just might get lucky.

On a side note, you could spend a few hours and do your own comps to get an idea as to what it might come back at. Use all the free real estate listing sites out there and do your own comparisons. Do a search within 5 miles of your home with similiar square footages, same # of bedrooms, bathrooms etc and see what like 2 familys have sold at. Might give you an idea...

Good luck.

Jackbass · 07-19-2011, 08:43 AM

Yeah I figured as much. I am not looking to sell as it pays for itself. But I wouldn't mind not paying that 135 or so a month for nothing. I suppose it could be worse in this day and age. At least the tenants are paying for it and not me personally.

My next door neighbor bought his three family for 220 2 years ago. The property sold 6 years ago for 380. I have 230 on my note so it is what it is.
Posted from my iPhone/Mobile device

WESTPORTMAFIA · 07-22-2011, 03:53 PM

Yeah kinda screwed. I have 1 option which is lender paid mi. It's a slight bump in rate usually no more than .25 more than the best rate available. Call me and I can get you a price to see if it's worth exploring. I also have an appraiser who can get us a free comp check to see exactly where you stand.
Posted from my iPhone/Mobile device

WESTPORTMAFIA · 07-22-2011, 03:58 PM

I had 1 guy this month get a value from a friend of his who is an appraiser. He didn't think he could get a loan. The appraiser I used gave him a value 45k higher than what he was told. Our appraisal was legit and passed appraisal review. We are closing his loan Monday. So don't give up just yet
Posted from my iPhone/Mobile device

Redsoxticket · 07-22-2011, 09:19 PM

Wait it out until you have 20% equity ? Maybe

You principal payments have steadily been increasing monthly thereby the 20% will occur sooner then starting a new loan with more years.
My calculations show that a .25 increase in interest will yield $39 more per month for the length of a new loan. Also you need to consider the closing cost.
If you can get a loan at your present rate or lower and same length of years then you have a good deal.
Posted from my iPhone/Mobile device

WESTPORTMAFIA · 07-23-2011, 05:47 PM

Quote:

Originally Posted by Redsoxticket

Wait it out until you have 20% equity ?
You principal payments have steadily been increasing monthly thereby the 20% will occur sooner then starting a new loan with more years.
My calculations show that a .25 increase in interest will yield $39

more per month for the length of a new loan. Also you need to consider the closing cost.

I meant .25 higher than the lowest going rate. Not what he has. We also have room to pay closing costs. He's at 100% now or close. If he can't find anything now he may be waiting 10 years to be at 80% with values still dropping and a crap ton of short sale inventory on the market not including the crap ton of stuff over 90 days late now that won't hit the market for a while.
If you can get a loan at your present rate or lower and same length of years then you have a good deal.
Posted from my iPhone/Mobile device

Posted from my iPhone/Mobile device

WESTPORTMAFIA · 07-23-2011, 05:49 PM

Sorry I hacked the quote typing on my cell but I think you can figure what I posted
Posted from my iPhone/Mobile device

Jackbass · 07-24-2011, 08:01 PM

My issue is I am in the market to purchase early fall end of summer. So I am not looking to refi. I don't want to write two notes within 3 months of each other. I may just ride it out for a while. Hope the Market values rebound and hope to refinance in a year or two. I just don't honestly want to shell out cash I can do other things with to get it to an 80/20 value at todays market. When I move the property will be covering itself and then some. THe PMI just pisses me off. I understand the concept but just feel like I am pissing 100 plus dollars a month away.

I have looked at area comps through zillow and other sites to see what recent sales of similar properties have been. And to see what other buildings are listed at. For me to get to 80 20 on the current note I am looking at shelling out close to 40,000 to get me in line. Unfortunately I have to use the note holders appraiser due to the fact that I don't want to Refinance. So f-it for now. I am going to let the tenants pay the bills and build equity in the property. Eventually this house is going to turn into a down payment for a home on the cape. This place was always a long term investment.

RIROCKHOUND · 07-25-2011, 12:21 PM

Quote:

Originally Posted by Jackbass

THe PMI just pisses me off. I understand the concept but just feel like I am pissing 100 plus dollars a month away.

Not judging your situation, but thats reasons 1-100 we waited until we had enough saved for a traditional 20% down deal.

good luck.

Jackbass · 07-25-2011, 12:54 PM

I absolutley bought the property at the wrong time for sure but I wanted to get in the game and based on projections I would have 20% eguity in a matter of months. Not to mention gutting two of the three floors and doing rehabs by myself I had a bit of sweat equity going into it. I just lost my nuts the first two years of owning it. Fortunately I do not need to sell. My next property will have 20% down. No more no less. Money is too cheap to borrow.
Posted from my iPhone/Mobile device