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I don't have the answers for all of your questions, but I did go through the process of getting rid of PMI from Wells Fargo last summer. Just keep in mind you have 2 options:

Option 1: 80% LTV based on current value. Requires new appraisal from WF approved appraiser for $550.

Option 2: 78% LTV of original appraised value. PMI will be automatically cancelled at this point. It is not 80%, you must reach 78%.

It sounds like there is a good chance that your house will appraise for much more than its original value, so option 1 is probably worth it. I didn't want to risk paying $550 for a new appraisal and having it not come back at what I needed it to, so I went with option 2.

ETA: Regarding option 2, people will say stuff like "you can request PMI be dropped at 80%, but they aren't required to drop it until 78%"

None of that means anything. It is 78%.

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1. Has anyone done this through Wells Fargo?

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I did this successfully with Wells Fargo last year.

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2. If I have the house appraised for this purpose and it appraises for more than its original value, does this get back to the tax assessor and result in my property taxes going up?

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The new appraisal should only be sent to you and Wells Fargo, the information should not get back to the tax assessor, although I can't guarantee your assessed value will not go up.

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3. Anything I'm missing in this?

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If your new appraisal does not come in at the required value you are out the appraisal cost and still paying PMI. From what I understand, that is the worst that could happen.

I just went through this with a FHA loan. At closing 5 years ago I was told I could drop once my loan got to the 80% or 78% LTV and after doing upgrades and reaching out to them I was told I couldn't. They told me it was the original Purchase price of the house is what it went off of and I had to get down to the 80%. At the almost 5 year mark in December I reached out to them again and they said I had to have the PMI for 5 years before I could drop it and that it would go away at year 10 with normal payments. I then got an amount of $23,000 to get me to 80% Of the original purchase price of the house to be able to drop the PMI. I paid the $23,000 in February and got my letter that they were dropping the PMI this month.



Not sure why the down votes. I even asked if I wrote the check in December would they drop the PMI and they said they had to charge it for 5 years period no exceptions. The only way for me to get out of it was to refinance the loan.