PMI for the life of the loan? No options?

[Samuel Metcalf]

Hey all, first post, please be nice ;)

My first property purchase was in 2017. I very much was guided by a family member and just did whatever they said. Been a great experience for 7 years. On a whim, I recently reviewed a monthly mortgage statement and saw I'm paying $150 in PMI. I have over 40% equity based on loan amount of $200K and general market value of the property at $400K (unsure what assessed value would be).

I'm thinking I'm a candidate for PMI removal. Called the bank, who quickly said "sorry, your loan does not have an option for PMI removal." Apparently, the contract I executed included a clause for PMI for the life of the loan. I'm shocked and embarrassed because I've never heard of "forever PMI". Yes, I'm a noob, but I've only ever heard of PMI coming off once you satisfy equity requirements. So here I am thinking oh great, I am past due on doing this, but at least I'll start to save another $150/mo!

Nope.

Mortgage servicer says only way to remove it is to re-fi. I guess I'm asking how common this is; if I would have been successful in somehow negotiating out of that clause; and if I have ay options to remove PMI at all? I'm just so deflated! Forever PMI? Ugh!