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Updated about 8 years ago on . Most recent reply

User Stats

70
Posts
38
Votes
Shayne Fee
  • Investor
  • Huntington Beach, CA
38
Votes |
70
Posts

PMI problems! Is this BS?

Shayne Fee
  • Investor
  • Huntington Beach, CA
Posted

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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9,934
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10,788
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Chris Mason
  • Lender
  • California
10,788
Votes |
9,934
Posts
Chris Mason
  • Lender
  • California
ModeratorReplied

Hi @Shayne Fee,

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

Two ways to drop PMI:

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.

  • Chris Mason
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