Does LTV really mean Loan to Value?

[Richard Arden]

I purchased a house a few months ago with a conventional 5% loan. So naturally I have to pay PMI. I got a great deal on the house and it appraised for 140k by the lending bank when purchased.

My loan is now at 77% of the value of the appraised 140k. So I reached out to my bank to get the PMI dropped and the response i got was that the "value" of the loan will always be derived from the purchase price. So that sounds more like Loan To Purchase Price and not value.

Is this the standard or is my lender jerking me around?