Can I get my PMI removed?

[Christina Zimmerman]

Hey, all.

I am under contract for $165,000, and the appraisal just came back at $178,000 (you CAN still find deals, people!). I am purchasing as an investment property and putting 15% down, so I have a $50 PMI payment in addition to the mortgage payment. With the new value, that 15% equity turns into 22%, and I *thought* I could get the mortgage insurance dropped. My lender told me that's not how it works, and that they still have to calculate based on the purchase price, not the value, so I can't get my PMI dropped until 12 months of payments, OR I can refinance.

I don't want to spend the money to refinance, but may reconsider because I could technically pull a little cash out and potentially drop the payment due to dropping off the PMI.

Does anyone know another way around this? Sucks I can't just have it dropped as the loan hasn't closed yet and we close on 10/8.

Thanks in advance!