PMI, it’s conclusion, and the premium payments - Posted by soapymac
Posted by soapymac on June 04, 2000 at 14:04:29:
I was talking with a member of the finance committee at church today. He made mention, in passing, that he finally got enough equity in his home that he was able to prove the equity over 20%…which meant he no longer had to pay his PMI insurance fee. He also mentioned that the value of his home had increased over $60,000 since he purchased it in 1994 with a Fannie Mae mortgage.
This raises two questions in my mind:
First, if he no longer needs the PMI insurance…and no claim was made for his particular situation, is he entitled to any refund of that money? If so, how should he proceed?
Second, I am aware that PMI drops off once equity reaches greater than 20%. Who has the responsibility to monitor when that event occurs? The mortgage holder? My friend? Is there a way to proceed…since the value of his equity went over 20% some time ago, making the PMI unneeded?
My thinking is that because his equity went over 20%, then the PMI fee was mistakenly collected. How does he get that back?
PS Any replies I will redirect to his email. His name is Bob, if you wants to address your mail to him. Thanx.