Removing PMI

Mortgage
1

Hi Everyone,

I have a questions regarding PMI. Let me explain my current situation. When I bought my property in Long Beach, CA, I only put 5% down payment and took a loan with 3.85% interest rate plus a PMI ( $214). Property value was $374k back then and It has been close to 2 years. But same properties around my neighbourhood has been selling for $435k. One of my friend has a MLS account and she told me this is what my place is worth. My current loan is $340k and LTV ratio is close to 78% ( 340,000/435,000).
here is the summary again:

Property purchase price when I bought 2 years ago : $374k

Property price now as per MLS comp : $435K

Loan amount 2 years ago : $355,300 ( approx)

My current loan amount : $340K

My monthly payments including PMI : $2,300

PMI = $214

So I called my bank PNC and ofcourse they are not very friendly to answer any of my questions and everytime I ask a questions, they reply saying " we do not have the answer and you have to send us a written request". They have no interest in waiving off my PMI.

Now, I would like to know let’s say with PNC I go for an appraisal and appraisal value come to be $420k and not $435k. Is it possible to pay off my principal after the appraisal with whatever amount that will make LTV to 78 and get rid of PMI. How long is the appraisal valid for? I do not want to pay more towards principal before even knowing the real appraised value. Also, I want to get rid of this PMI before the next housing bubble . Because If I do not get rid of this now, I will be stuck with this forever and that’s what the big bank wants. Also, if my bank is not willing to cooperate, is there a way I can take any actions against them?

I would highly appreciate any replies.

Thanks,

Ro

2

Can you refinance?

@LbJW might have a clue.

3

Just FYI: Refinancing, at this time, kills the lowest 30 year 3.85% interest rate he locked. Not a good idea. He will end up with 4.5% or more fixed rate.

Appraisal is valid for 3 months, but it is lenders discretion as they may have some duration policy.

Is it possible to pay off my principal after the appraisal with whatever amount that will make LTV to 78 and get rid of PMI ==> Yes, this is the best way, pay down to 78% and get rid of PMI.

If they want to take another appraisal (if old one was invalid), go ahead and ask them to appraise again, at your cost, and pay down to 78%. Talk to PNC bank.

Bank always co-operates. IIRC, they accept removing PMI once in a year only. Check with them.

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