My single family home I bought five years ago has more than doubled in value. How do I get rid of PMI without paying for an appraisal.
If you have paid your mortgage in a timely manner over the past 24 months, just ask your lender to remove it. Usually the only issue would be if the mtg was 30 days late over the past 24 months.
For the MI to be removed you will need to provide some sort of proof to the lender. Just asking them nicely will not work. Call your lender directly and ask them the process. They will give you all the information you need.
Actually, Countrywide did it for us just by asking. I explained that the house was worth X dollars and the loan amount was X dollars, that my payments were paid in a timely manner and that I wanted it removed.
They told me to send in a letter requesting the removal. I sent the letter with 3 recent sales from the MLS in my neighborhood and “Poof”, no more mortgage insurance.
I took the advice and called the lender. They said to fax a request.
I have never made a late payment and the house has doubled in value.
I just hope they don’t come up with some dumb excuse. Are there any laws about PMI?
Federal law enacted in 1998 governs the removal of PMI so the lenders cannot make up the rules as they go along. The link below from the federal trade commission may be helpful.
It has been several years, and the lender was Countrywide. I bought the property using 90% financing. The lender’s appraisal at the time the loan was made was a lot higher than my loan amount. After 24 months of on-time payments, I sent a letter to Countrywide requesting waiver of PMI on the grounds that my current mortgage balance was less than 80% of the original appraised value.
Request granted and effective with my next monthly loan payment and no new appraisal was required.