PMI problems! Is this BS?

[Shayne Fee]

I hate surprises.

I have always been told, get to 80% loan to value and you can remove your PMI.

I'm there.

I call my mortgage servicer and say I'd like to remove my PMI and they say nope! Got to be at 75% LTV! What!?

I closed this loan in August of last year and remodeled the home top to bottom. We're probably around 22-23% equity in the home right now. 

This is annoying! Does anyone know if this is BS? 

They said it's a Fannie Mae guideline for removing PMI early...if that was true I would think one of the multiple lenders I talked to about this during my loan process would have mentioned it...if anyone knows what the real deal is here or has any advice I would greatly appreciate it!

Thanks in advance!

[Chris Mason]

Hi @Shayne Fee,

Someone might not have been as clear with you as would be ideal, sorry that happened!

Two ways to drop PMI:

• Call the loan servicer and drop it without otherwise touching the mortgage. Here is the guideline that is probably applicable to you to drop PMI without refinancing.
• Refinance. 80% LTV if SFR owner occupied will work.

Note that while in theory it doesn't matter, generally appraisers are a little more liberal if the goal is just to drop PMI. If your estimate is 23% equity, it's a coin toss if that would appraise at 25% equity or 80% equity.