PMI for 5 years?

[Ken Badziak]

Ok, so here's the situation. While flying a transcon from Baaaaahston to Sin City, I found myself having a discussion with the other cockpit monkey about his house, which he owns down in the Ft Meyers area. He bought about two years ago with very little down, triggering a PMI payment.

Between regular mortgage payments and subsequent appreciation (mostly appreciation, as it sits on the water, on a canal) there is now substantially more than 20% equity in the house.

The issuing bank is telling him that regardless of the equity in the house, he has to carry the PMI for a minimum of five years before he can get rid of it.

Is this correct? First I've ever heard of this.

Thanks!