Cancelling PMI on conventional loan with 79.2% LTV

4 Replies

Hi there,

I own a single family from 2012 and bought at $611000 with 10% down as Conventional loan. Currently I have $482,500 which will be at 78.9% LTV. I need to remove my PMI as I still need to pay for another 6 months to reach 78% and to be removed automatically. If I request the Morgage company then they required to do an Appraisal with their own agent.

The question is when they do appraisal and if the appraised value is less then my original property value, will they still consider my original value as I reached below 80% or do they take Appraised value?

in 2016 when I did appriasal from the mortgage company they appraised my home value at 575000 but according to my property tax assessments the property should be increased by $10000 from original value. I heard someone saying when they appraise they don't consider all the upgrades we had from the builder. Not sure is that true.

According to my current Fair market value from county it shows as $595500.

Appreciate your advise greatly

Thanks

Vinny

County tax assessments have little relation to the value of the property.  They're not really relevant for loan purposes.

Read your loan documents and ask the lender about their specific process for removing PMI. Processes will vary. They do typically do an appraisal (at your expense). Typically, for this purpose, they would use the price you paid or the new appraisal, whichever is lower, for the value. But you need to read your docs and call and ask for specifics to know for sure.

Thanks Jon, When I requested for removal of PMI the following criteria was listed in the letter they sent to me.

Borrower requester Termination:

1. Your LTV must be 80% or less of the lesser of the original appraised value or purchase price of the property, and the current appraised value.

or

2. if your loan closed more than five years ago, your LTV must be 80% or less of the current appraised value of the property.

Seems like the second criteria would apply because you got the loan more than five years ago and they will use the current appraised value.

Thanks Jon. Will update when I get more information on my Appraisal 

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