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Updated about 8 years ago on . Most recent reply
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PMI problems! Is this BS?
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!
Most Popular Reply
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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.