Dropping mortgage insurance premium on convo loan

[John Wong]

Hello BP,

I purchased a property last year with a conventional loan with 5% down here in Las Vegas. The purchase price was 174k making my loan amount 165k, however, it was actually appraised at 185k and over a year our market has been appreciating. 

Now, in order to drop MIP ive read that your loan to value needs to fall below 80%. Ive been making mortgage payments a little over a year now so my loan amount would be lower than 165k now and recent comps show model matches in my neighborhood trading now at 220k

Would I need to order a new appraisal to show my new LTV? approx 165k/220k = .75 LTV so that should put me in a pretty sweet spot to negotiate a MIP drop right??

[Kevin Romines]

@John Wong I would encourage you to call your lender and tell them what you want to do. They will direct you as to ordering the appraisal. Once you have that back and it meets the requirements, they can then remove the MI. 

I hope this helps?