Lender won't remove PMI
 

Hello, I live in IL and I currently have a mortgage for $358k in which
i had put less than 20% down. I financed through ohio savings bank.
Its been about a year and i'm paying $200/month in PMI. Not cheap. My
balance is around $308k and the property value is worth i would say
390k since units are going and selling around that price now.

I called Ohio Savings and asked them if they can send out and
re-apprise the home and get rid of my PMI as its within the 80%
loan-to-value or whatever. They said the only way is if i pay my loan
principle down to reach the 80%, as they would still go under my old
apprisal value when i signed. That would be around $23k to pay down.


Can someone enliten me on my options. I really don't want to refi
since my righat is around 4.375% on a 3yr ARM.

I got rid of my PMI.
No need to refinance.
I had to higher an appraiser (approved by the lender) to come out and
re-appraise the house. After seeing that my house went up in value,
they dropped the PMI.
Even though I had to pay for the appraisal ($250), it was well worth
it.

On 13 Apr 2005 12:41:50 -0700, someone wrote:


I had to higher an appraiser

Was that a Freudian slip, you wanted the appraisal to be HIGHER???


Reply to NG only - this e.mail address goes to a kill file.

In article ,
Eric Pawtowski wrote:

One of them is that you must have at least two year's worth of
on-time mortgage payments. If you've only lived in the house for a
year, you don't have two years's worth of payments. Doesn't matter
how much the house has appreciated or what you've paid off, they
want to see those two years.

Another condition is that your credit rating must be high
enough. How high is 'enough' will vary from bank to bank.

I am sure that the bank would like to see all kinds of
things. But in the real world, what matters is state and
federal law. In most places, once you get down to 80%,
the bank is obligated to remove PMI. The bank can demand
their own appraiser, and I think you have to wait at least
1 year. Best to check the law in your area, and then
quote chapter and verse to your lender. BTW, also check
your contact with the lender...you may have signed away
your right to do this.

-john-

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John A. Weeks III 952-432-2708
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