Is there a required time period for PMI?

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Is there a required time period for PMI?

I purchased a home 3 years ago. I financed $249k for the home with an FHA loan. The home appraised for $330k at the time of purchase and there is $235k outstanding on the loan. From my understanding, the loan to value at the time of purchase would have been at 75%. So why would I have been required to pay PMI in the first place? I have asked the mortgage company to remove the PMI and my request was denied because the loan is less than 5 years old and they have not established that the LTV is below 80%. By my calculations the current LTV is around 71%; how are they arriving at their figure?

Asked on November 9, 2015 under Real Estate Law, North Carolina

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Your figures may not be accurate. Contact your state department of financial regulation and file a consumer complaint to have it removed. The PMI should be eligible to be removed after two years if the appraisal comes back with the proper percentages.


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