Can I get my house reappraised to get out of PMI?

I did exactly that last summer.i was in the house 4 years and wanted to get rid of PMI. Got tired of throwing that money away.

First thing i did was talk to the lender to find out my options. They helped me out tremendously on this aspect. I did some behind the scenes research and pulled comps to get an idea of what my house would appraise for before diving in bwcause i wanted to make sure I wasn't wasting my time or money . My lender wanted my business so they did Lender paid PMI, which actually worked out good for me and my interest rate still went down .375% (started with 3.875% with original mortgage, refi'd at 3.5%). Went through with the refi, and appraisal came back where I needed it. Actually, I refi'd for 20 years instead of 30, and house note only went up like $60 more than what I was paying when I still had PMI.

I don't remember what the closing costs were tbh...im thinking 4k but dont remember. We rolled that back into the loan so i didnt have to pay anything at all out of pocket.

Some loans will not allow you to drop PMI just by hitting 80%, some will.

Refinancing will be required if they will not allow.

Keep in mind that rolling refinancing costs into the refinance raises the principal amount or you pay a higher interest rate.

Interested to hear how this goes. I got my initial loan with low interest rate and I’m doing major remodel and paying with it with cash and Personal loc. Hoping the extra equity after remodel will allow me to get pum knocked off. I’ve been told there are a few instances it can be done without refi.

It depends on who and which type of loan. I had mine through Wells Fargo on a FHA loan and could not drop PMI before 5 years no matter what. Well I could have refinanced but that was the only way. I ended up writing a check for the remainder of the difference of the original purchase price and the 80%. They still wouldn’t drop it off until I hit the 5 year mark.

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I don't remember what the closing costs were tbh...im thinking 4k but dont remember. We rolled that back into the loan so i didnt have to pay anything at all out of pocket

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So you only came out of pocket on the 5% DP?

didn't know you could roll closing costs like that.

Man I really need to do more research. I'll be buying within the next year or two. I'll probably have enough for a 5% down but rolling closing costs could really help me out.

I'm tired of paying fricking 1800/month to rent a house when I could have a mortgage for 2/3 that.

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It depends on who and which type of loan. I had mine through Wells Fargo on a FHA loan and could not drop PMI before 5 years no matter what. Well I could have refinanced but that was the only way. I ended up writing a check for the remainder of the difference of the original purchase price and the 80%. They still wouldn’t drop it off until I hit the 5 year mark.

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that is true. Another trick wells fargo pulled out of their hat was some BS fannie may statement that my loan had to be 75% LTV to eliminate PMI and you had to use their appraiser (who happened to be the same guy i used when I bought the house with a 25% up charge). Lucky the house did appraise and I got rid of PMI. I hate wells fargo with a passion. When i moved and bought a new house I told my broker he would loose my business if he sold my loan to them, and so far he has not.

But to the OP, you need to find out if your loan is FHA or any other federally backed loan. If it is as others stated you have to wait 5 years, If not you have to request an appraisal through the mortgage company and if it appraises less than 79% LTV you can request PMI to go away.

"But to the OP, you need to find out if your loan is FHA or any other federally backed loan. If it is as others stated you have to wait 5 years"

My daughter bought a house 3 years ago. She was told that her FHA loan would always have PMI obligations. I asked specifically at closing.

"You can remove PMI after 11 years if you put more than 10% down. The FHA no longer allows borrowers to cancel FHA MIP after the LTV has reached 78%.You can still avoid paying mortgage insurance after you have paid down your loan-to-value to 80% or less, such as refinancing your FHA loan to a conventional loan."

I called the lender today and he said a couple of items. First, I have passed the two year seasoning period. There is no pre-payment period or anything, but, the appraiser must go through them (Regions). However, he said the house appraised on his end higher due to property taxes going up where I live (Oxford, MS). So, they already have a higher property value by about $2k higher than what I had originally thought. I am only $7k away from the 80% LTV threshold. So, I am going to eschew the re-appraisal ($550 here) and just keep tossing an extra $1k/month into principal and be done with it in six months.

Then, the plan is to look into refinancing into a 10- or 15-year mortgage. My current interest is 4.25%. Anyway I could drop that a point? My credit recently hit 800 which is about 50 points higher than it was when I closed on the house two year ago