In Pennsylvania are there any limitations on the amount of private mortgage insurance (PMI) you can be charged?

Asked about 2 years ago - Bloomsburg, PA

My original loan amount was $46,875, original appraisal amount was $84,400. Current balance on loan is $43,517.16. I am being charged $163.28 each month for PMI. I'm not necessarily expecting to have it removed completely. I would, however, like it at least reduced to a reasonable amount. I have not had a single late payment in over two years and whenever I've tried to talk to Chase all they ever do is send me a copy of the law which of course never mentions whether there are any limits which homeowners can be charged. By the way, this amount was never disclosed to me prior to closing and when it was I felt trapped and taken by the original mortgage company handling the loan. I pay $623.53 each month; $200 over what that companies "good faith estimate" told me.

Attorney answers (3)

  1. Jacques H. Geisenberger Jr.

    Contributor Level 14
    Best Answer
    chosen by asker

    Answered . In the current housing market what is your house presently worth? If the value is anywhere close to the prior appraisal and your credit score is good to excellent, instead of trying to reduce your PIM, you might shop for a new lender to take advantage of the present favorable mortgage rates being advertised with no closing costs and possibly no PIM because of what appears to be a low debt ration to value of collateral. You also should consider speaking with an attorney about whether you have a cause of action for failure to disclose the PIM at closing.

    If you think this comment was helpful, please mark it AVVO. If you have enough information about me, I would appreciate an AVVO review. Thank you in advance.

    Mr. Geisenberger is a Pennsylvania-licensed attorney only. The information is not, nor is it intended to be, legal... more
  2. Todd Michael Bales

    Contributor Level 6

    Answered . The amount of the PMI depends on a few factors including: Base to Loan percent; Type and Term of Loan and loan amount. I believe you can shop around for the best rates just like any other insurance product. I would research this on the internet and then speak with your lender about placing or replacing the insurance yourself. Also, you can pay down your mortgage to under 20% and the pmi would go away.

    My comments are not intended to establish an attorney-client relationship, are not confidential, and are not... more
  3. Pamela Koslyn

    Contributor Level 20

    Answered . Check your loan documents to see what they say about this. The PMI may not be an amount, but rather a percentage of the monthly mortgage payment that's due.

    Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to... more

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