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Questions About Harp Program Refinance

PMI insurance pre-paid?

I needed PMI when I purchased my home. I paid it all at once at settlement 1.2 percent. I have now tried to take advantage of the HARP program and refinance at a lower rate.
I am being told that my current mortgage company Wells Fargo is paying my PMI. They purchased my mortgage shortly after I bought.
I already paid it and now they are claiming that they are paying it, this is preventing me from utilizing the HARP program.
Can someone explain to me how they are paying something that I already paid for in full at settlement. This appears to be a error, the C.S. rep at Wells Fargo claims that if I paid for it at settlement this should not be occurring but it will take up to 40 business days to “look into it”.
A lot can happen to interest rates in 40 days, I am very un-happy about this… if that money went into an interest bearing account and they did not pay the PMI…

I am really going to be pissed.
Mike Hoffman
There wasn’t an escrow account.. the pmi was going to be an extra 50 bucks a month 12 months X 50.00 doesn’t equal 1.2 percent of 179,000.00 which is what I paid at settlement… I paid the whole bill, once and done… thanks for your response though…

Industry Expert answers:

When you buy a house, and have an escrow account, you pay all the first year fees UP FRONT – PMI, insurance, taxes. BUT, a part of each monthly payment goes into the escrow account, and after the first year, your mortgage company pays PMI, insurance, taxes.

So yes. You paid it up front. They pay it now. PMI isn’t a “once and done” thing. You pay it EVERY YEAR, just like with property taxes, just like with homeowners insurance. So you didn’t pay “in full”, you only paid for the first year.

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