Getting rid of PMI from My Mortgage

[Rohit Kochar]

Hi Everyone,

I have a questions regarding PMI. Let me explain my current situation. When I bought my property in Long Beach, CA, I only put 5% down payment and took a loan with 3.85% interest rate plus a PMI ( $214). Property value was $374k back then and It has been close to 2 years. But same properties around my neighbourhood has been selling for $435k. One of my friend has a MLS account and she told me this is what my place is worth. My current loan is $340k and LTV ratio is close to 78% ( 340,000/435,000).

So I called my bank PNC and ofcourse they are not very friendly to answer any of my questions and everytime I ask a questions, they reply saying " we do not have the answer and you have to send us a written request". They have no interest in waiving off my PMI.

Now, I would like to know let's say with PNC I go for an appraisal and appraisal value come to be $420k and not $435k. Is it possible to pay off my principal after the appraisal with whatever amount that will make LTV to 78 and get rid of PMI. How long is the appraisal valid for? I do not want to pay more towards principal before even knowing the real appraised value. Also, I want to get rid of this PMI before the next housing bubble . Because If I do not get rid of this now, I will be stuck with this forever and that's what the big bank wants. Also, if my bank is not willing to cooperate, is there a way I can take any actions against them?

I would highly appreciate any replies.

Thanks,

Ro