When I bought my home in 2004 I did not have the required 20% down, so I was told at the closing table I would be required to pay private mortgage insurance.
The purchase price was seventy four thousand dollars, my private mortgage insurance payment was two hundred fifty seven dollars and seventy seven cents per month.
I was not aware of what private mortgage insurance was, or what was considered standard. I was told at the closing table that my private mortgage insurance payment would go down to twelve dollars and thirty three cents as soon as my principal balance hit sixty four thousand two hundred eighty eight dollars. There was relief in sight.
After putting every extra penny I can manage to come up with on my prinicpal balance, I was below the stated amount on the contracts amortization charts. I was seventy dollars below when I contacted the mortgage company Everhome.
I was told to put my request in writing and fax it to the research department. They would respond to me within ten buisness days in writing. I did this the very same day.
One month later, I recieved a response stating my private mortgage insurance would not be eliminated because I had not hit the 80% mark.
I called them and stated I do not want my private mortgage insurance eliminated, just lowered per contract. I was verbally told " It is all or nothing."
I started doing some research online, and found out the standard private mortgage insurance payment is between fifty and one hundred dollars a month. Or .05% of your begining balance, and it goes down each year as your balance drops. I am paying 4.18% of my begining balance, and it has yet to come down, regardless of contract.
I filed a complaint with the BBB in Jacksonville, Fl and they apparently sent a copy of this to Everhome, who responded to me by letter that I recieved yesterday in the mail.
Here is what I was told word for word in this letter that was wrote by Susan De Luca. Dated Febuary 13, 2007.
" The PMI Disclosure does not reference a reduction in the premium amount. The PMI company's records reflect a fixed rate monthly premium of $ 257.77 and do not reflect a premium reduction. The amortization schedule you provided reflecting a reduction in the PMI premium does not agree with the PMI Disclosure statement that you signed at closing. We are unable to honor the premium reduction as an amortization schedule is not considered a contractual agreement. For this reason, we respectfully deny your request for an adjustment or refund of the PMI.
Please note, that the PMI Disclosure does not make reference to premiums being lowered, but it also does NOT state that the amount is a fixed rate either.
The law also states that the amortization schedule must be attached to the PMI Disclosure so that the owner can track where they are, and when their PMI can be eliminated.
If there was never any intentions of lowering my pmi payments, my chart should not say that this amount would come down, and the closing attorney should not have shown this to me, and told me that my payments would come down.
Not only am I being overcharged PMI every month, ( I should be paying $ 30.83 per month not $ 257.77) but now they refuse to follow their own contracts, and are lieing through their teeth.
I have many other complaints with this mortgage company, at one point they were overcharging my taxes, they are not giving me proper credit on the interest, and have unexplainable monthly charges added to my loan, that are not contracted. But this PMI payment is the one that is the most unreasonable.
I have had my mortgage for almost three years now, and I have never once missed a payment, Have Never been late. My contract clearly states I am not high risk, and there is no reason for them to not work with me, or follow thier own contracts.
They Know I am living on a fixed income, I have told them clearly that I agreed to the PMI amount because it would be lowered, and I have made it clear that if this PMI does not come down, I will soon not be able to make my mortgage payments. They do not care. They will not work with me, and they are soon going to force me into foreclosure.