Simple question for y'all.

We bought in 2017 with PMI. I believe the current comparable sales would show my home valued well above the 20% threshold.

What do I need to do/provide to the bank to get that removed?

TIA

Conventional, FHA, or something else?

Assuming it's a conventional loan, then you need to call your servicer and request to start the removal process. They're going to require an appraisal to remove it. Depending on when you bought in 2017 it might still require 75% LTV to remove.

Seems like 22% equity is typically required to eliminate PMI, but it might depend on your loan.

The rules for conventional loans are generally speaking:
-First 2 years, cannot remove regardless of LTV
-2-5 years can be removed with an appraisal at 75% LTV
->5 years can be removed with an appraisal at 80% LTV
-At 80% LTV payment based upon the original amortization schedule and original appraised value the PMI can be removed upon request with no appraisal. (i.e. you have to make the payments, you cannot do it by paying down the balance)
-At 78% LTV based upon the original amortization schedule and appraisal the PMI is required to be removed. (i.e. you have to make the payments, you cannot do it by paying down the balance)


That's for primary residences only, and there's some minor variation between FHLMC and FNMA.

Contact your mortgage company

In the process of doing this right now. My company required I hand write a note and scan it in to them (seemed really weird.). Have the same basic guidelines listed above. Had to list upgrades and chose either BPO for 105 bucks or an appraisal for 750. I went with the BPO.

Guy came out a few days later to take pictures, I think to confirm the upsates and general condition of the home.

Now waiting to hear back. I think we should be good just based on the market, but will wait to see for sure.

Thanks for the replies. We have a conventional loan. I will contact the bank and see what they say/require. Thanks everyone!

Lender here. A lot of incorrect info or info related to specific policies. Get into your original loan docs. Find your PMI binder. Read the the terms of removal. I work for a huge national servicer and will tell that these days less than half can be removed by an appraisal, thanks 2008. There are a dozen or so different companies that are all interchangeable at origination. We literally pick the cheapest that gets the job done.

This was my exact same scenario and am wanting for them to get to me. My BPO was $150 though.

FHLMC's requirements

Quote:

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Based on the Mortgage's current UPB and the current value, the LTV ratio must be:

75% or less if the Mortgage is seasoned between 2 and 5 years
80% or less if the Mortgage is seasoned greater than 5 years
The minimum two-year seasoning requirement is waived if the Servicer determines the increased market value of the Mortgaged Premises since the Origination Date of the Mortgage is due to substantial improvements, the LTV ratio must be 80% or less.

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FNMA Requirements

Quote:

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the LTV ratio must be

75% or less, if the seasoning of the mortgage loan is between two and five years.

80% or less, if the seasoning of the mortgage loan is greater than five years.

If Fannie Mae's minimum two-year seasoning requirement is waived because the property improvements made by the borrower increased the property value, the LTV ratio must be 80% or less.

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These are requirements to service FNMA/FHLMC loans.

hph6203 said:

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The rules for conventional loans are generally speaking:
-First 2 years, cannot remove regardless of LTV
-2-5 years can be removed with an appraisal at 75% LTV
->5 years can be removed with an appraisal at 80% LTV
-At 80% LTV payment based upon the original amortization schedule and original appraised value the PMI can be removed upon request with no appraisal. (i.e. you have to make the payments, you cannot do it by paying down the balance)
-At 78% LTV based upon the original amortization schedule and appraisal the PMI is required to be removed. (i.e. you have to make the payments, you cannot do it by paying down the balance)


That's for primary residences only, and there's some minor variation between FHLMC and FNMA.

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A question I've never been able to get an answer on even after talking to my mortgage company is this:

If at 2 years I get an appraisal and it comes in at say 80% LTV. So I'm just short of the required amount to get rid of PMI early, but I'm alot closer than I was with my original purchase price/valuation.

Would that be my new benchmark to pay down towards it removing? Based on my current amortization schedule it would naturally fall off at around the 5 year mark. In my head, that should just move up that it naturally is removed, but I have a feeling thats not the case

I'm sure the answer is "it varies" but since I've never gotten an answer in my specific loan instance, can someone shine some light on their experience?

I wouldn't say I'm 100% confident in this answer, but 95% sure the automatic termination stays the same regardless of the new appraisal amount. At least when I worked in our servicing department the rule was get an appraisal, and you have something like 60 days to pay down the balance to the required LTV to have it removed. Once that period expires you would need a new appraisal.