am i required to get a appraisal my loan is at 77.65% and my lender requires me to get one but i was under the impression that according to the home protection act as long as my loan was under 78% of the original loan i didnt need one and pmi would automatically be cancelled anyone who can help thanks my lender is citimortgage i dont know who owns the pmi.
2007-12-05 00:36:11 · 5 answers · asked by gato 2 in Business & Finance ➔ Renting & Real Estate
Once your equity exceeds 20% according to the original amortization schedule the PMI should drop automatically. If you want to drop it early based upon a market appraisal you'll need to get a professional appraisal by an appraiser acceptable to the lender and apply for removal of the PMI.
You'll also normally need a one or two year clean payment history to have PMI dropped in any event.
2007-12-05 00:53:10 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Alot of people are misguided on what it takes to drop PMI...it's not as easy as you think.
For dropping PMI, they go by the ORIGINAL appraised value from the time your loan was originated. So, if you are 77.65%, and have been making payments at least 5 years and have NEVER been late, then call your lender and it should be dropped automatically, but get them to send you something in writing.
If you haven't been in your house that long, and you are hoping a new appraisal will help you, I am here to tell you it doesn't work like that.
Read the PMI agreement that was in your loan package.
2007-12-05 11:41:07 · answer #2 · answered by Expert8675309 7 · 0⤊ 0⤋
A lot of folks also give half answers, I've noticed. When you reach 78% of the original appraised value, they are required to stop PMI, but most still have to write/call and remind them.
If you reach 80% of the CURRENT value you can petition the lender to stop PMI, but you'll need a current appraisal to back it up, AND it is still their call. In this market I'd say it's iffy, at best.
2007-12-05 15:26:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You have to get an appraisal due to the fact that markets are variable. More than likely, you have enough equity to drop the PMI. The appraisal will confirm market conditions for the lender and they will be able to drop your PMI.
2007-12-05 11:10:44 · answer #4 · answered by kirk m 3 · 0⤊ 1⤋
You are correct. HOPA does specify the limits and I believe 78% is the automatic dropoff...if you are "current".
2007-12-05 11:00:37 · answer #5 · answered by Matt K 4 · 0⤊ 0⤋