Can mortgage company force you to take pmi on your current mortgage?

Jason
I'm being laid off at the end of this month. I want to refinance my house before that happens. If the mortgage company finds out I'm being laid off, the refinance will be denied. If they then deny it, can they force me to add PMI insurance to my current 30-yr fixed mortgage since they would be aware (1) I'm unemployed and (2) given the drop in my home's value I have less than 20% equity?

Cheryl
They can't, since they will only refinance to 80% of the appraised value. There would be no PMI by default.If you can't refinance because you have no equity they will still not add PMI to your present loan.

Edra
I hate to be the bearer of bad news, but refinancing with the knowledge that you are being laid off (and concealing it) is fraud. Mortgage companies look for at least 3 years of continuation of income for employment. They run third party verifications and will likely confirm your employment with your employer. When your employer gets the form, there is a "probability of continued employment" line, and obviously they will have to disclose that you are being laid off. Lenders are serious about limiting bad loans because they have had so many, and this is a big reason why the economy is the way it is right now. I know that it seems tempting to try for a lower rate, but you should save yourself the hassle, effort, and inconvenience until you get established in a new job.The good news is that if you stick to your current loan, they will not add PMI, so you are safe!

Anita
You do not have to pay private mortgage insurance for the life of your home. Once you have reached 20% equity in your home by appreciation, improvements made to the home or paying down the principal balance of the mortgage, you can force the lender to cancel the private mortgage insurance.

Billye
If you Refi they mortgage can force you to add PMI if you get a loan for 85% or higher of the homes value.But if you stay with your company you are with now they can not Put PMI on your home.

Armida
And people wonder why so many people are defaulting - dishonesty on loan applications is a huge contributor to the problem

Essie
its not fair that they force you for this...