Author Topic: Lower PMI?  (Read 528 times)


  • 5 O'Clock Shadow
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  • Posts: 3
Lower PMI?
« on: October 07, 2017, 08:07:08 PM »
Okay, so I bought a home two years ago and have PMI on the loan. I've done some work on the house (put a new roof on, re-did a bathroom, plumbing, etc) and I was wondering if it makes sense to have it appraised again to see if the PMI would be dropped? Does this even make any sense?


  • Handlebar Stache
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  • Age: 39
  • Location: Kauai & Denver
Re: Lower PMI?
« Reply #1 on: October 08, 2017, 01:06:09 AM »
You will most likely need to do a refinance to delete the PMI. You can find out by simply calling your bank. Let us know what the bank says.


  • Pencil Stache
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  • Location: NJ
Re: Lower PMI?
« Reply #2 on: October 10, 2017, 02:13:08 PM »
From a search "To remove PMI, or private mortgage insurance, you must have at least 20% equity in the home. You may ask the lender to cancel PMI when you have paid down the mortgage balance to 80% of the home's original appraised value. When the balance drops to 78%, the mortgage servicer is required to eliminate PMI."

So, if you're at 78% with a new appraisal, you're all set.


  • Handlebar Stache
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Re: Lower PMI?
« Reply #3 on: October 10, 2017, 02:24:41 PM »
If it's an FHA or similar government loan, yes, you'd need to refinance.  With a conventional loan, you may very well not have to. It could be as simple as calling your lender and asking them to drop it.  What is your current LTV? 

An appraisal could be worthwhile, too.


  • 5 O'Clock Shadow
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  • Posts: 30
  • Location: Cleveland, OH
Re: Lower PMI?
« Reply #4 on: October 10, 2017, 02:28:32 PM »
Call your lender.  Each loan servicer will have a different variation on when they will remove the PMI.  The fine print is often they will remove it at 78% automatically or 80% with an appraisal, but ONLY based on the original amortization schedule, not including pre-payment.  Most people are surprised/angered by this.  Refinancing is often the only/best course of action to remove it early.