Good morning?

I am trying to find a way to remove the private mortgage insurance(PMI) from my monthly payment(108).

Due to real estate values skyrocketing, I have easily surpassed the required 80/20 loan to value ratio requiring the PMI.

I informed my bank of this and was told that I cannot achieve this thru market value increase, only thru the actual paying down of my mortgage.

WTF?

There has to be some way to get this removed. I shoudn't be penalized for my house appreciating in value.


Any info appreciated.

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Enough about me, how are you doing?

A quick and simple refi should take care of it. Just refi the balance into a shorter term loan and resist the temptation to pull some of your equity out.

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Mike Tangas
'73 280SEL 4.5 (9/72)- RIP
Only 8,173 units built from 5/71 thru 11/72

'02 CLK320 Cabriolet - wifey's mid-life crisis

2012 VW Jetta Sportwagon TDI...at least its a diesel

Non illegitemae carborundum.

Yes! End of story.

I agree about the temptation to"cash out" as so many people do.

My sister wanted to do the same thing and pull about 100k out of her house. She and her nit wit husband wanted to have it in the bank to invest. I promptly discouraged that as that 100 k would slowly disappear for "other things"

Thanks

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Enough about me, how are you doing?

Get all the info to refinanace. Decide who, besides your current mortgage company, you would like to go with. Then go to your current mortgage company and ask them to eliminate the Insurance payment or you will take your buisness somewhere else.It's to easy to get another mortgage company now. Rates are still low and the mad rush is over. So a lot of companies are looking for business.

Dave

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1970 220D, owned 1980-1990
1980 240D, owned 1990-1992
1982 300TD, owned 1992-1993
1986 300SDL, owned 1993-2004
1999 E300, owned 1999-2003
1982 300TD, 213,880mi, owned since Nov 18, 1991- Aug 4, 2010 SOLD
1988 560SL, 100,000mi, owned since 1995
1965 Mustang Fastback Mileage Unknown(My sons)
1983 240D, 176,000mi (My daughers) owned since 2004
2007 Honda Accord EX-L I4 auto, the new daily driver
1985 300D 264,000mi Son's new daily driver.(sold)
2008 Hyundai Tiberon. Daughters new car

An equity pull can make sense in Canada, but you must be careful. People do it all the time and go on vacation, buy an RV, big screen, etc.

The real secret is to invest it. As the capital appreciation in your residence is not taxable, taking out equity means a tax dodge on the capital gains. Invest the money into an RRSP (tax deferred savings plan) and reinvest any gains to keep taxes deferred. Interest paid on money borrowed to invest is tax deductible.

Here's the "smart" thinking around here:

Open a credit line against your home. That way you get a superior interest rate. Invest the line into an RRSP and get a healthy tax deduction. Reinvest future gains. Tax deduct the interest on the credit line.

Example:

Take $25,000 out of the house in a credit line equity pull. Invest the $25,000 in RRSP. Supposing you have substantial enough income (you can't be making $25,000 to make this work...) you will get a tax refund of about $7,500. For real long term growth, reinvest the $7500. However, you can use the $7500 to make a large immediate payment against the credit line. You now only owe $17,500 against the $25,000 asset. At the end of the year, you should also get a tax deduction for the $600-700 interest you will pay.

You should NEVER borrow against your asset base to purchase depreciating assets or consumables.

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John Shellenberg
1998 C230 "Black Betty" 240K

http://img31.exs.cx/img31/4050/tophat6.gif

Don't make this difficult on yourself, refinance 80% of the value of your home, pay off higher interest loans and loans you can't write off it there is any $$$ left put it in a profitable place.

Talk about a blast from the past. This thread now looks to be from another planet.

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1977 300d 70k--sold 08
1985 300TD 185k+
1984 307d 126k--sold 8/03
1985 409d 65k--sold 06
1984 300SD 315k--daughter's car
1979 300SD 122k--sold 2/11
1999 Fuso FG Expedition Camper
1993 GMC Sierra 6.5 TD 4x4
1982 Bluebird Wanderlodge CAT 3208--Sold 2/13

I miss the good old days, will be awhile before we see appreciating real estate again.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

Don't these things move in a cycle though?

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01 Ford Excursion Powerstroke
99 E300 Turbodiesel
91 Vette with 383 motor
05 Polaris Sportsman 800 EFI
06 Polaris Sportsman 500 EFI
03 SeaDoo GTX SC Red
03 SeaDoo GTX SC Yellow
04 Tailgator 21 ft Toy Hauler
11 Harley Davidson 883 SuperLow

Check the Home Owners Protection act of 1998. I am pretty sure there is a portion of that which covers PMI. As I recall, once you have more then 20% value on the house, the mortgage Co is required to drop the PMI at your request.

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Sent from an agnostic abacus

2014 C250 21,XXX my new DD ** 2013 GLK 350 18,000 Wife's new DD**

- With out god, life is everything.
- God is an ever receding pocket of scientific ignorance that's getting smaller and smaller as time moves on..." Neil DeGrasse Tyson
- You can pray for me, I'll think for you.
- When you understand why you dismiss all the other possible gods, you will understand why I dismiss yours.

Sometime cycles are VERY slow; I've been waiting about 6 months to sell a couple of properties. What goes down must go up.... eventually.

Craig where are they? The market can be decent to horrible depending on what town they are in. Some areas of CT are doing pretty good.

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1999 SL500
1969 280SE
2023 Ram 1500
2007 Tiara 3200

One is in North Providence, RI (where the market is completely dead); it's a 1920 house that my grandfather built. The comps in the area are not moving at all in the $125-150K range, and they are in better condition. We are looking at selling it "as-is" for around $110K (asbestos, lead paint and all). I thought about holding it as a rental, but it needs about $50K of work, I live 2000 miles away, and I have no clue when the market will turn in that area.

The other house is better, it's a summer cabin a couple of blocks from the beach in a private development in RI (not winterized , needs plenty of work) built in 1938. The land is worth more than the house. It was valued around $400-450 a few years ago, we are looking at accepting $320K from a cash buyer who is probably going to turn it into a McMansion. Not great, but we don't really want to sit on this property either.

The level of appreciation (increase in value) depends on what time period is being measured. If it's just a short time period, say 24 months, then I think one report would say that the burbs of San Francisco and Phoenix are the locations with the biggest recovery numbers in the short term.