Can you drop PMI on your home loan with an updated appraisal showing increased property values if you have a home improvement loan for a pool that is not in the mortgage? Its not a Home Equity or anything. I cannot find a definite answer and wondered. Not interested in the "pool loan" debate just a simple q. Thanks!

When I applied to have PMI removed it was required that an appraiser for them come out to do appraisal to get it removed and of course had to pay like $400 for that appraisal.

aggiecody06 said:

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When I applied to have PMI removed it was required that an appraiser for them come out to do appraisal to get it removed and of course had to pay like $400 for that appraisal.

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This was also my experience.

Was easy and cheap for me. $75 for a BPO and it was gone in about 3 weeks. They gave me the option to pay $750 for an appraisal or $75 for a BPO not sure why you would choose the higher one.

Believe it depends on the company. Call them.

I think a pool loan is smart! Guaranteed by the pool, right? So when you are tired of taking care of it, you just stop paying and they come take it away for you, um I mean from you!

Lender selected appraisal company is standard.

I know it has to be re-appraised...thanks for your help. I am certain it would appraise for probably 60-70% more than when we bought it. I didn't want to go through all that if they don't drop the PMI because of the second loan. I know they won't if it's a home equity because duh... but I wanted to make sure it wouldn't affect if it was just a secondary home improvement loan without the house equity as collateral.

All lenders have to disclose how this procedure is going to work but for the most part it goes like this. You have to have PMI until you get 20% equity in the home. I always advise people to watch their payment amortization schedule and start contacting the lender and bugging them when you hit that number. They are supposed to drop it automatically once you hit 20%. If you feel like your property has gone up in value, you can get an appraisal done to prove you have attained the 20% number. You don't HAVE to get an appraisal but sometimes it's worth it to get out of paying PMI.

Long story short:
78% LTV = automatic cancellation on the date the original principal is scheduled to hit 78%, assuming timely payments
80% LTV = Borrower initiated, based on original value*
75% LTV = borrower initiated (years 2-5) based on new/higher appraised value
80% LTV = borrower initiated (years 5+) based on new/higher appraised value
80% LTV = borrower initiated under 2 years with verification of substantial improvements affecting home value
HPA only applies to original price/value. HPA-related rules are here: https://files.consumerfinance.gov/f/201508_cfpb_compliance-bulletin_private-mortgage-insurance-cancellation-and-termination.pdf