Decrease PMI fees

We have been in our new house for about
three years. At the time of purchase, our
credit was marginal which led to our PMI
being assessed at top rate. We have a
conventional loan and put 5 down at
closing. We’ve paid extra toward
principal almost every month. Since
closing, with diligent effort, we’ve
increased our credit score by about 100
points. Now that our credit is 720, can
we get a better PMI rate without
refinancing? APR on our 30 yr. fixed is
4.75, PMI is 265/mo. Outstanding
principal balance is 260,000 on 275k
loan. Thanks

Asked on January 7, 2019 under Real Estate Law, West Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Unfortunately, you have to refinance to get a better PMI rate. Your PMI rate is part of your original loan terms and agreement; they will not take it off the current loan. Rather, you would have to replace your current loans with a new one.


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