Equity Home Loans

Why am I charged Private Mortgage Insurance?

At closing, I have not found any reference to this. Citi purchased my loan from Principal who did not have this and now we have found our you have been charging us the amount for the service without my consent. I want this resolved now!

Public Comments

1. Your loan balance is more than 80% of the appraised value.. To fix this, you would need to have a first loan for 80% and a second loan (at a higher rate) for the remaining balance.
2. You are automatically charged that if you put down less than 20% down on the property. It is insurance to cover the loan for the bank. You don't get anything from that policy. Once you have 20% of equity in the property ask them to remove the charge.
3. PMI is a type of insurance that benefits the lender in the case of your default. It usually is required if the LTV is greater than 80 % at the time of purchase. If should be mentioned in the loan documents. The premium is normally paid annually but added to the monthly mortgage payment. My understanding of a mortgage that is sold is that the buyer of the mortgage cannot make modifications to the mortgage. I would look carefully at the loan closing papers to see if there is any mention of a year of "Private Mortgage Insurance" or "PMI" and analyse your monthly payment to determine what the components are: Principal, interest, taxes, property insurance, PMI (?). If you have difficulty, I would suggest calling the title company that did the loan closing and ask them to go through the closing documents with you. Depending on when Citi purchased the loan from Principal, it could have been that Principal didn't make a PMI payment to the company because it is only due once a year, but Principal should be able to tell you whether a monthly PMI premium was a part of your payment. If it is determined that there was no PMI on the loan, I would write a letter to Citi, sending it certified requiring a signature for receipt, and explain that to them. I would also make sure to not pay any PMI in your monthly payment. Good luck.
4. What type of loan did you do? That's why a lot of the %100 financing loans are broken down in an 80% (one loan) 20% (2nd), to eliminate the PMI hassle. If you have less than 20% down on a home, or the equity situation is under 20%, you have to pay PMI. Maybe you should refinance with a lender who will disclose this to you and explain everything and what your options are
5. If you have mortgage insurance, it was disclosed to you at your closing. If you don't like it, call Citi and complain. Get your closing documents out before you do.