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PMI removal

Hey folks, I have Private Mortgage Insurance that I am lo bigsal02/08/19
"My reading of the Homeowners Protection Act states that it superttthero02/08/19
Yeah i found the relevant provision when i had another chanc bigsal02/08/19
Weirdly enough by being a huge jerk and threatening to sue t bigsal02/11/19
bigsal (Feb 8, 2019 - 7:22 pm)

Hey folks,

I have Private Mortgage Insurance that I am looking to get rid of.

The loan is now 74% LTV. This is due to paying it quite aggressively.

I requested it to terminate in writing.

Lender is saying that the PMI will not terminate until I hit the date that I am scheduled to amortize to 78%. They sent me a lovely PDF of this policy.

My reading of the Homeowners Protection Act states that it should drop off automatically when it hits 78% regardless of the date of amortization to 78%.

Is that right?

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superttthero (Feb 8, 2019 - 7:32 pm)

"My reading of the Homeowners Protection Act states that it should drop off automatically when it hits 78% regardless of the date of amortization to 78%."

I think the issue here is when it drops "automatically."

This isn't legal advice because I know nothing about this area of law, but from discussions with my lender on the exact issue: It will drop off automatically on the date you are scheduled to hit the prescribed LTV (I forget if its 78% or 80%). Otherwise, you have to pay for an appraisal of the lender's choice to show that it currently is at that LTV.

The issue here is proof. At the the start of the loan, everyone agreed that as written the note would hit the trigger LTV in X number of years/months, if you deviate from that, fine, but you have to pay for an appraisal to make sure the home hasn't dropped in value.

If your lender hasn't told you about the appraisal option, they're probably playing dumb and you can likely get it done if you bring that up. If you're just a few months off, then it's probably better to wait since the appraisal could? cost more than a handful of months of PMI, but if it's many months or years, do it asap.

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bigsal (Feb 8, 2019 - 11:00 pm)

Yeah i found the relevant provision when i had another chance to look. Looks like ill have to eat the appraisal.

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bigsal (Feb 11, 2019 - 10:40 am)

Weirdly enough by being a huge jerk and threatening to sue they did a free BPO and took it off.

So yay a free 70 bucks a month back in my pocket.

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