I never heard 75% LTV was required to remove PMI before. I have heard 78%... But the 75% figure just feels like they are moving the needle however they feel like doing.
My home at the time of refinance was appraised at $425K in 2011. I currently owe about $348K. Based on COMPS I was very confident an appraisal would easily come in over $440K... making PMI removal easy. Now that the LTV is 75%... I'd need an appraisal of just under $465K. Which in the current market... is probably right on the money of what the appraisal would come in at.. Based on Zillow and recent inflated comps.. maybe even higher.
The question is if I feel like paying $425 for the bank to send out an appraiser... might just be giving the bank and appraiser $425 to screw me with some low appraisal.. or just low enough to make me come out of pocket too much to make the PMI removal worth while financially at this time.
Anyway... just curious if anyone knows the legality of 75% LTV being required to remove PMI before I make a decision. If rates would drop below 4% again I'd just refinance out of my PMI in a heartbeat.. seems like the simplest option. But who knows if rates will fall again and where home prices will be.
I actually thought PMI automatically dropped off at 78% the appraised value upon refinance. So I figured since my PMI is pretty low anyway... I'd just wait it out.. Seems like my bank moved the needle though.
I never heard 75% LTV was required to remove PMI before. I have heard 78%... But the 75% figure just feels like they are moving the needle however they feel like doing.
My home at the time of refinance was appraised at $425K in 2011. I currently owe about $348K. Based on COMPS I was very confident an appraisal would easily come in over $440K... making PMI removal easy. Now that the LTV is 75%... I'd need an appraisal of just under $465K. Which in the current market... is probably right on the money of what the appraisal would come in at.. Based on Zillow and recent inflated comps.. maybe even higher.
The question is if I feel like paying $425 for the bank to send out an appraiser... might just be giving the bank and appraiser $425 to screw me with some low appraisal.. or just low enough to make me come out of pocket too much to make the PMI removal worth while financially at this time.
Anyway... just curious if anyone knows the legality of 75% LTV being required to remove PMI before I make a decision. If rates would drop below 4% again I'd just refinance out of my PMI in a heartbeat.. seems like the simplest option. But who knows if rates will fall again and where home prices will be.
I actually thought PMI automatically dropped off at 78% the appraised value upon refinance. So I figured since my PMI is pretty low anyway... I'd just wait it out.. Seems like my bank moved the needle though.