Mortgage Broker did not Disclose Correct Information to Remove PM
In California...I recently purchased a 3-unit home using a low-money down Freddie Mac Loan. My plan is to due extensive rehab which should allow the property to appraise for higher so as to remove the PMI ASAP.
In the closing paperwork, I received a standard document stating that when I reach 80% LTV based on current appraised value, I am eligible to have PMI removed.
Come to find out later (after closing), that Freddie Mac will only remove PMI if appraised value reaches 65% LTV based on re-appraisal.
From my reading, it seems that 65% is the overriding rule. However, I do have an issue that this information was not accurately disclosed to me during the Escrow period. Furthermore, inaccurate information was provided. Do I have any recourse here (legally or other)?
Also want to add that refinancing may be an option, but will cost me a few thousand dollars more (and interest rates may go up by the time I'm eligible to refinance).