Impound Account Cancellation Question

[Tatyana Shevnina]

My lender would not let me cancel my impound account until my LTV is 80% or less. Their LTV is based on the appraisal from 1.5 years ago (much lower value) rather than current FMV and they wouldn't revalue the property based on market increase. I asked if I could take out RE tax from the impound and leave PMI in, the answer was still no.

Just wondering if that's the standard industry practice (not allowing the owner to start paying RE tax themselves) or if these are lender-specific policies?