home equity/pmi requirements
Posted 21 October 2004 - 11:50 PM
Posted 22 October 2004 - 08:10 AM
In my line of business, I do not deal in PMI. The building is clearly being financed as a primary residence, which is good because you are getting rates that would be hard to beat in the commercial arena.
Right now even at the $550,000 value that you mentioned, you are looking at only $88,000 or 16% equity. I might be wrong here, but it is my belief that PMI is needed when your equity is below 20% and that a second mortgage such as a HELOC is counted when determining the equity.
The best course of action of course is getting in touch with the lender holding the first mortgage and asking it directly.
Posted 22 October 2004 - 08:48 PM
Posted 23 October 2004 - 09:23 AM
Posted 24 October 2004 - 12:05 AM
Posted 24 October 2004 - 01:18 PM
The trick here is convincing the lender. In the commercial side of business, we do modifications regularly. For example, one of our customers might have a $500,000 line of credit for working capital, but his business might have grown enough that the customer needs $1 million now. If the lender agrees, the Bank can create a new loan agreement increasing the amount, and ”modifying” the advance rate to allow for more availability.
1 user(s) are reading this topic
0 members, 1 guests, 0 anonymous users