Are you struggling with an underwater home loan that you’re not able to refinance? You might be able to qualify for mortgage refinancing under the new HARP early next year; however, in the meantime you might still be able to ditch your Private Mortgage Insurance. Many underwater homeowners don’t realize that they’re eligible for PMI termination at 78% equity based on their original purchase price, not the home’s current value. Here’s an article from MortgageLoan.com with several helpful tips for ditching your Private Mortgage Insurance even if you’re underwater:
Can you still get rid of PMI despite being underwater on your mortgage? The answer may surprise you. PMI, or private mortgage insurance, is what you have to buy if you put down less than 20 percent on your mortgage. It enables your lender to recover some of its losses in the event you default and is typically billed as part of your monthly mortgage statement.
President Obama signed an executive order in 2011 changing the program requirements for HARP. While your loan has to be held by Fannie or Freddie in order to qualify there are no equity requirements and you won’t need an appraisal. This is good news for underwater mortgage holders that couldn’t qualify under the old program guidelines.
If you’d like to learn more about refinancing your mortgage without lender junk fees at closing, check out my free Underground Mortgage Videos.