For PMI insurance on a home loan. Isn't it the responibility of the Loan company to evaluate this annually?

Question

Loan Company is asking for $300.00 for an apprasial.
I've always been told that it was a law that the loan company had to automatically stop deducting this fee when the loan to value ratio was @ 75% or less.

Answer 1

The rule is that happens automatically when you reach 75% based on the original amortization schedule, not on the new appraisal.

Answer 2

You heard wrong, that's not the law. It is the home owners responsibility to figure out if there is 20% equity in the home.
This will require an appraisal by a appraiser on their approval list. Why are you complaining, I would spend 300 with no complaining to save 100-150 per month. It will pay for its self in 2-3 months.
RE Agent
Remax

Answer 3

PMI (Private Mortgage Insurance) protects the investor of your loan in case you default. Most times, this investor is not the servicer (meaning the company you get your bill from). They will not automatically check your loan against their guidelines. It is up to you to place the request. Most times the investor will require an appraisal in order to have PMI removed. This is because they have an interest in your property until the loan is paid in full.

Answer 4

They dont have to take that off
What they want to do is for you to show them your home has gone up in value.
It is a good idea to do if they will allow it you will pay the 300 but save alot more in the long run
the federal law is 78% of the original loan amount

Answer 5

In order to get rid of PMI, you have to have 20% equity then refinance.

The lender will not evaluate this for you, because it is free money for them.

Answer 6

Its not money for them its protection for them in case you default and its not their obligation to do anything. However it is now tax deductible