Is there a required time period for PMI?

UPDATED: Sep 29, 2022

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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


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 7 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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