PMI question

I requested a response in writing and they listed 3 options. #1, write a check for the difference. #2 pay for an independent appraisal and if the loan to value is 80% or less, pmi will be removed. #3 loan value vs. current appraisal must be 75%. The appraisal is on the refi from 2013 was $248K and we think it should appraise now for $270k. I currently owe 208K

quote:

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The appraisal is on the refi from 2013 was $248K and we think it should appraise now for $270k

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Based on what? I doubt it appreciated $22K in 2 years. Perhaps certain neighborhoods in Orleans parish, but prices in many other areas of LA are softening, not increasing.

How much are you paying in pmi? We were paying $92/mth, the appraisal costs $400, house appraised for enough to remove pmi, saved $2000 after paying for the appraisal. Mortgage holder is Wells Fargo, very easy process.

conventional loan. I believe we are paying a little less than $100 a month in pmi. Not the end of the world, but I would like for it to go away.

I'll quote the document word for word:

canceling pmi based on the current value
you have the option to cancel pmi based on the current value and investor requirements.

For this option you must meet the following requirements:
1-you must reach the required LTV ratio of 75% based on the current appraisal value.
2-you must have had no 30 day late payments
3-you must have closed on your mortgage more than 2 years ago.

78% is the lowest I have ever read or heard about.

Doesn't matter how much the PMI is, the point is it`s money that is protecting the bank from you. I understand people have to have it when they don`t have enough of a down payment. I was paying it until I refinanced a few years ago. Now I apply it and the $ i'm saving from the refi towards the principle.

There are several articles online that say PMI must be canceled when your loan reaches 78%

LINK

Haven't found gov't webpage with this yet

Fannie Mae states on page 201-29 that if the loan is less than 5 years old, you must pay pmi.
Fanie Mae

Here is my biggest gripe. The original mortgage was under written by a smaller company in Baton Rouge. I saved all of the documents from the closing and found last night that PMI may be canceled after the loan to value reached 80%. I did not choose to have the loan bought out by wells fargo but it happened. I never knew about the 75% loan to value, it was not disclosed to me when I refinanced the house.

The 75% loan to value rule is a fannie mae rule, so how can wells fargo try to hold me to it? I have a friend who is a closing attorney and I called her to discuss but I am waiting for her to call back.

Now PMI never comes off just FYI