Can a bank refuse to accept an appraisal that would cancel PMI?

You should have contacted your mortgage lender to find out what their process is to remove PMI. I would assume the appraisal initiation would be done through their office and ordered with their approved vendor, which you would have to pay for. This would create the reliability of value that the lender will look to for removal of your mortgage insurance. Let me know once you contact them about their process!

The term "Appraisal" comes in many forms.. Some are not really appraisals, but rather a Brokers Opinion.. some are "Drive By" appraisals, and others are full up appraisals... your lender can refuse any appraisal if they choose to... but if the appraisal was a full up 1004 appraisal, and its not more than 90 days old, they should have accepted it.. That being said, even today ... if someone is purchasing a home, and the home is appraised and for some reason we had to switch lenders,,, the new lender will often times not allow the appraisal to be transferred.. They require a new appraisal.. so it's really not uncommon... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com Cross Collateralized

How long ago was the appraisal done?

yes, unless they ordered the appraisal themselves. An appraisal ordered by the home owner would not be acceptable.

Generally speaking, yes. Most lenders require the appraisal to come from someone one "their" acceptable appraiser list. If it was an appraiser on their list, I'd appeal to a higher person.

The short answer is yes they can.

Call your mortgage company and request for them to have their approved appraiser do the appraisal, when the person comes to the house, give them a copy of the report you have already. If yours was done correctly the two reports will look very similair. You may have to pay again but the result will be the same. NO more MIP. www.HOMEMORTGAGEXPERT.com 855 411 lend Peter

Usually you are required to pay PMI for a minimum of two years and after you have paid the mortgage balance down to 78% of the ORIGINAL purchase price or appraisal (which ever is less) it must be cancelled under law. Before assuming anything follow the advice above to check with the servicer of your loan (where you make your payments) about what they would require to consider cancelling the PMI. I believe the minimum requirement after 2 years and before 5 yeas (both Fannie Mae and Freddie Mac) you can REQUEST cancelation if you can document 25% (not 20%) equity in the property; after 5 years you only need to document 20% - but it is still up to the current loan servicer to decide whether they will cancel it. Again, the only guaranteed way to have it cancelled is to pay the balance down to 78% of the original value - lower of purchase price or appraisal used when you got the loan.

Are you paying the MI monthly or is it in your loan payment to the bank? If you're paying it, according to the Homeowners Protection Act of 1998 (see the links below), you can request its cancellation when your mortgage balance reaches 80%, or less, of your current loan's original loan amount. Has it? It is not necessary for you to get your home appraised to do this. If the MI is in your loan payment, only the lender can cancel it, or it can be canceled if your home is either sold or refinanced. http://www.federalreserve.gov/boarddocs/caletters/2004/0405/CA04-5Attach1.pdfhttp://www.mgic.com/pdfs/71-41599hopa.pdf