How to remove PMI insurance...20% equity or 20% loan paid off???

[Todd Moriarty]

My girlfriend doesn't want to pay her $200 monthly PMI insurance payment anymore. She's been there 3 years, the house has appreciated significantly, and she now has 20%+ equity in the house.

But her bank, Huntington Bank, won't re-appraise the house and remove the PMI. They tell her she needs 20% paid off from the mortgage. I asked my realtor and she confirmed this.

Is this correct?  Is this the new way of doing business for banks since the recession?  If so, what are her options?  Re-finance into another loan, with a slightly higher interest rate (currently) and pay more closing costs rolled into the payment?  That probably wouldn't save her much.

Are all banks doing this now?