Question by laurie888: Mortgage refinancing.?
My credit the past few years improved. Doubled my income by graduating nursing school, have a small inheritance with which I have cleared up ALL old debt and am adding on to my house.
I was stuck with $ 300/month PMI when I bought the place. I have 36% EQUITY in the house and am paying cash for a $ 25,000 addition..
As of this moment, I have no other debt. I have not been late in 13 months. In the past two years, I was 60-90 days late most of the first part and then when my mom died I was sidetracked and went a few days over — triggering the ‘start’ of foreclosure. Literally, my payment was in the mail when they officially started the paperwork.
So far I’ve only checked with my current company, they say they’d love to refinance but Fannie Mae won’t approve it. I have to be 2 years outside forclosure.
Any suggestions? I’ve worked so hard I shouldn’t have to suck up this PMI another 10 months, there’s so much I want to do to make this house a home. Can I CALL Fannie Mae?
Thanks, yes I tried that by the form on their webpage and they you can’t be 60 days late within 2 years … refused on that basis.
I think maybe I just need to find a real person to talk to, someone with the company must be able to help.
Answer by Shredded Cottage Cheese
If you have a valid appraisal that shows you with 36% equity, you can contact your current lender and demand PMI be dropped since you have over 20% equity. That’ll save some serious coin until you can re-fi.
They can drop PMI without a re-fi
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