I've heard that it's hard, or costly to get PMI removed off a home, and I was hesitant to even ask how to have it removed. I've heard people have been told three year minimum on before it can be removed, I heard it takes an appraisal to confirm the house has 20 percent equity, and I heard it could take a couple months for the lender to even consider removing it.
So, I called my lender Friday and asked them their policies on removing PMI. The man on the phone told me that all I do is ask for him to put in a request and they'll remove PMI. I was pleasantly surprised. I've had the house for little over a year and the loan is through pennymac. We put 15 percent down when we first bought the house.
Any other experiences?
I would not bet on that to happen though not impossible.
All those potential scenarios are correct, appraisals or length of loan, equity are all factors. There are even some new loans that based on which one you get PMI will never be removed unless you pay off the mortgage or do a refi with enough equity.
I would contact another lender just to get a 2nd opinion.
@Curt Davis why would he contact another lender if his existing lender told him they would do it.
Wells Fargo refinanced my loan to a 15 year a few years ago. About 2.85% and they removed the pmi. I forget the term they used but it was something like a straight line refinance. The did comps on the phone and said my house was worth about 50k more than it was. They used that valuation to remove the PMI.
I know it depends on the loan. We just got a conventional 5% loan. The pmi automatically falls off when the loan value reaches 78%. I am totally stoked about that. I get to save my downpayment. When the market no lingers make sense than I can pay off the 22% with no need to refinance or anything else. IE I don't lose my amazing interest rates!!!!
If it is an FHA or USDA those loans are pmi for life depending on when you got the loan. Ie the only way to get rid of it is to refinance the loan.
Thanks for your thoughts!
@Elizabeth C. make sure to call bank when you get to 80% to request that come off. You should be able to have it off of there based on request, and that could say you a couple months of paying the PMI on your loan.
Thanks I definitely will! As we just got the loan we have a ways to go but I will definitely remember to do that!
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