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Company Loan Type APR Est. Pmt.

PMI premium modification

Posted on: 13th Jul, 2009 03:12 pm
We are in the middle of a loan modification they proposed a lower interest rate but did not lower the PMI. The problem is the high PMI premium the modified loan is still not affordable. The payment is still above 31% of Gross income. Can we negotiate PMI with the investor? Can we suggest a restructure of the premium to include it in the rate?
Hi cyclist!

Welcome to forums!

You can negotiate with the investor to lower your PMI. But in most cases, the interest rate for paying the mortgage debt is reduced under the modification plan and not the PMI. It depends upon the discretion of the lender whether he would lower your PMI.

Feel free to ask if you've further queries.

Sussane
Posted on: 13th Jul, 2009 07:24 pm
cyclist23

PMI protects the lender for the amoutn you owe.If the amount you owe did not change significantly then PMI may not change or they may not lower your PMI

good luck
Posted on: 14th Jul, 2009 10:49 pm
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