[joseppe]

Originally Posted by jimkerr

Call your loan servicer. Tell them you want to drop PMI. They’ll tell you you’ll have to pay for an appraisal. If that appraisal shoots your value up to where you have 20% equity, they’ll take care of you and slow you to drop the PMI.

Appreciation doesn't matter. Depending on when you bought, if you have appreciation it may be more prudent to refinance rather than paying down the existing mortgage.

[Girlcopper]

Originally Posted by Chuck1674

Mortgage with Citizens.. Seven months ago,I put down 10%. Now looking to get rid of PMI. Have realized some appreciation. Will I need to come up with the additional 10%. OR will I definitely need a new appraisal to show appreciation. Hoping they will work with me. Any advice before I call them this week. Thanks

Just call them and ask. I doubt you will get an accurate answer here

[cathell62]

Double check your contract. Some companies that handle mortgages don't care that if you pay it down below 80%, if you had it for less than a specified number of years typically five. After 5 years and you're under 80% they can remove it. All depends on the type of contract that you signed and what the PMI portion States. You might have to do a total refi which is going to cost you a whole lot of additional fees which may not be worth it.

[DAVES]

Originally Posted by Chuck1674

Yes i will call, just looking for experiences of others. Did they require appraisal? Does anyone have a decent appraiser they recommend. My post stated I am going to call but it is always good to do due diligence first. No need to respond if u have nothing to ad

Mortgages are tightly controlled. You will find that everyone, every bank has the same policy.

Call the bank, probably better to set up an appointment and do a face to face. You are paying mortgage insurance because to put too little as a down payment. The banker is no longer your neighbor, they will they have to follow the rules. Appreciation? A safe bet they will charge you for an appraisal.

Thinking out of the box, perhaps, a refinance is an option. There is a gotcha there too.
You will pay closing costs AGAIN even using the same bank. Check stuff like liens against the property? As your lender they would be notified of any liens against the property BUT they can and will charge you anyway.

[Neils]

Originally Posted by Leadbone1

Your appreciation doesn’t matter. It would be nice if it worked that way but it doesn’t. You have to pay down 20% of the original loan value before you can get rid of PMI. It’s been that way forever.

Incorrect. Once home value exceeds that the amount needed to cover the full 20% most banks will allow you to drip the pmi

[DAVES]

Originally Posted by joseppe

Appreciation doesn't matter. Depending on when you bought, if you have appreciation it may be more prudent to refinance rather than paying down the existing mortgage.

We all need to realize we are in the ring way out of our weight class.

Fair? We signed a contract to pay xx% for 15 or 30 years. Rates fall and I want to renegotiate. YES, I DO. We are shocked that the bank that already charged us closing costs want to charge us yet again. In my case the closing costs that I had already paid once meant a refinance does not pay.

[momchaves]

From experience, find a new place for your mortgage. We had PMI on our mortgage with Citizens First Bank, and let's just say we tried to follow their directions to eliminate the PMI, only to have the house not appraise enough. They used their appraiser. Need I say more. We got a lower rate, no PMI, with a local Credit Union. Have had other poor experiences with the same bank.

[mark100]

Call Citizens and ask. Anyone else making a comment is purely speculation.

[rphil11ort]

Some banks require 1 year then You can pay for.an appraisal and if 20% equity exists pmi will go away. Definitely call the servicing dept to check the rules and the.process

[rphil11ort]

Originally Posted by Leadbone1

Your appreciation doesn’t matter. It would be nice if it worked that way but it doesn’t. You have to pay down 20% of the original loan value before you can get rid of PMI. It’s been that way forever.

Unless you have an fha mortgage pmi will go away with an appraisal. It will go away naturally at 25% from the original value. At least it has been that way for.the last 38 years I have been in the business

I called the bank and they said just make a principle payment that brings the balance of original loan where 78 percent is owed and paid comes off automatically.