Mandatory removal of PMI at 78% LTV I am almost there, but I want to refinance now and don't want to wait
I can pay down the balance to 78 LTV, but wondering whether the mandatory removal means that the amortization needs to get there "naturally" or can I pay it down now. I am underwater so getting an appraisal is not possible. I believe I am HARP qualify. 78% LTV happens in January I don't want to wait until then. by bjanel_527_789 from Scottsdale, Arizona. Aug 31st 2012
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Not sure where your getting your info from.. if your loan is conventional, and you have 20% equity, you can get an appraisal, present it to your lender, and they will drop PMI.. On conventional loans, PMI will not be removed if you hit 78% of your original loan balance.. The property value has to support the required equity.. on FHA loans, there is a clause that once you have paid MI for 60 months, and you have paid down your original loan balance to 78% or lower, then it's supposed to come off, however we are seeing that even FHA is giving folks a hard time about this... I have several clients right now fighting with HUD to get it removed... if you are underwater and in a conventional loan, you will not be able to remove PMI if you refinance or not.. 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
Travis Torcoletti (travis.torcoletti)
#0 ranked lender in South Carolina - 372 contributions
Your loan to value (LTV) ratio has nothing to do with your original loan balance but rather your loan balance today versus what your home is actually worth on today's market. You might have, and likely do, a value significantly lower today than just a few years ago when you got your loan.
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