Getting rid of Mortgage Insurance

[Emily Wiu]

I purchased a house 2 years ago with 3% down. The mortgage comes with a hefty PMI per month, and the original lender had sold the mortgage to Dovenmuehle as soon as my house was closed. Since I have been paying extra on the principal amount aggressively and the house value has increased quite a lot, my LTV ratio will be less than 80% with a new appraisal. However, when I reached out to Dovenmuehle I was told that my two options are 1: pay down enough principle that the LTV ratio on the original appraisal is less than 80%, or 2: have the LTV ratio on the new appraisal be less than 75%. Is that legal? I thought I only need LTV ratio on the new appraisal to be less than 80%. I also read somewhere that I should look into my original loan documents, but since the loan has been sold to Dovenmuehle, I'm not sure if the original loan documents are still applicable.

Thank you!