Pmi

I still have pmi insurance on my mortgage however since I purchased my home as a foreclosure and the market hasn’t gotten better the value of my home has gone up. We visited our lender to see what we would need to prove the new value of our home to show we have more then 20% equity but were told by them that didn’t matter, that’s not how it works (which I know to be false) and the 20% had to be paid down. Are there different types of pmi plans I am unaware of? Do you think I need to get a lawyer?

Terry Says:  Please write back to me with the name of your lender, and the name/phone number of the person you spoke with.  Let them know that you will be calling back with ME on the phone!  Unless you’ve missed telling me something, these people need a wake-up call!    I won’t post this personal info, but I will get in touch with you to set up a time to call.  And then, since people will be wondering what happened, I will post an update here!

Now just to be clear, as soon as you have 20 percent equity, you can request an end to PMI.  But there is a slight out for them to wait until you have 22% equity.  And you’ll have to pay for a new appraisal to prove this.  They will require you to use an approved appraiser.   And depending on your interest rate and credit score, this might be the perfect time to refinance completely and get away from them!