70% LTV to remove PMI?

[Melissa Grayson]

I recently asked my lender about when I might be able to remove PMI from my loan. I have a rental property with a conventional loan. I put down 15% thinking I would be able to remove PMI pretty soon after building a little equity.

I've only ever heard people say you need an 80% LTV to remove PMI so I'm a little confused. I asked the lender why I needed the higher ratio and all they said was because it's an investment loan. I asked if that was just the ratio for automatic removal and they said no, that's what I would need to request removal period.

Does anyone else have any more insight or experienced this situation? I'm bummed that I'm further away from removing PMI than I thought. 

Secondary question: Do you all receive annual PMI Disclosure Notices? I've only received one for the first time this year after owning properties for 4 years (different property from the one in this question).

[Mike Grudzien]

Quote from @Erik Estrada:

Quote from @Melissa Grayson:

I recently asked my lender about when I might be able to remove PMI from my loan. I have a rental property with a conventional loan. I put down 15% thinking I would be able to remove PMI pretty soon after building a little equity.

I've only ever heard people say you need an 80% LTV to remove PMI so I'm a little confused. I asked the lender why I needed the higher ratio and all they said was because it's an investment loan. I asked if that was just the ratio for automatic removal and they said no, that's what I would need to request removal period.

Does anyone else have any more insight or experienced this situation? I'm bummed that I'm further away from removing PMI than I thought. 

Secondary question: Do you all receive annual PMI Disclosure Notices? I've only received one for the first time this year after owning properties for 4 years (different property from the one in this question).

It sounds like a refinance may help lower your monthly payment and remove your PMI. What is your current mtg rate?

I agree with Erik