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Discussion in 'Seminole Networking' started by Stax63, Mar 8, 2018.
I am your guy!
I'm currently building a pool which is expected to increase my house value. If I just pay for a new appraisal, can I use that to get my lender to drop my PMI? The reason I don't want to refi is I'm at a 30 year fixed at 4.25 and don't think with the recent rate increases, i'll be able to lower my rate at all.
Refinancing is often done for the wrong reasons. It can be a bit shady and people are often encouraged to do it when it’s not in heir best interest. So yes, if you have an appraisal that supports 20% equity in your home, you can have the PMI removed. Keep in mind that you must have owned the home for 12 months and can not cancel PMI on an FHA loan.
Actually the rule is more complex than that. If you've owned it less than 5 years and get it re-appraised for PMI you must be at 75% LTV or below to have it dropped. After 5 years it's 80%. You must have good repayment history either way and go through your servicer for ordering the appraisal.
FHA is not that simple either. The FHA rules have changed so it depends when your case # originated. For recent FHA loans the MI is for the life of the loan unless you put down 10% or more. Then it lasts 11 years.