We refinanced our house in the beginning of this housing market crash. Despite never being late and never missing a payment we were stuck with a $158 PMI charge every month because our house was worth so much less than we owed. The PMI should “fall off” our loan after five years or prior to that if it gains enough in the loan to value (and we contact the company and get an appraisal done and submit loads of paperwork). The housing prices around here have if anything, fallen. Today though I received our insurance bill which has skyrocketed. When I called to find out why I was told it’s because our house value has INCREASED nearly $100K.
So technically on our mortgage bill starting in April provided I don’t do anything, we will be paying $158 a month because our house is practically worthless and another $200+ because our house is worth so much.
Where, how, why, who, what determines house value? If the insurance company deems it worth $600K shouldn’t our mortgage company also see it as $600K? Why can one company value the house so high and the other company value it so low, both profiting from their choice of value?
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9 comments:
Wow. That is amazing. And so frustrating. No wonder your head explodes.
Ridiculous. I don't see how the insurance company can do that. I hope you can look into it without spending boatloads of money. I think they just expect you to accept it.
It just keeps exploding Gracey! :)
Thingy, one search on the good ol internet showed a house in my neighborhood sold for two thousand dollars less than they are saying my house is worth back in Dec. but its more than twice the size of mine. Infuriating!
that sucks :( Maybe you can talk some sense into someone
um, this is INSANE. and infuriating.
have you ever seen that michael douglas movie called "falling down"? blargh! so many things make me feel the way that character acts in that movie!
I am trying Laura! Sort of like banging my head into a brick wall so far!
Yes! I have seen that movie and I completely understand. Their logic seems to be it would cost waaaaay more to build a new house than apparently to buy an already built house that's twice or even three times the size. It just all seems like a giant money making scam to me
It seems that anyone who bought and continues to own a home since 2000 is totally screwed and getting ripped off.
It does seem that way. I think the whole American Dream thing is over for most
The mathamagic of numbers!
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