Yep I'm a dunce!!!

**nodmicks** · 10-25-2005, 10:45 AM

A few months back I noticed we still had PMI on our mortgage. I was really suprised as The home had originally been 68,700. We financed 60,250. I knew it had been reappraised quite a few years ago at around 88000. I thought hum 88,000 value a few years ago made us own more than 20% back then so why are we still paying PMI when we be here 8 years the end of march. Why wasn't the PMI dropped when it was reappraised???

I called the bank . The term was 20% of the original appraisal amount no matter how much the property value went up! So it didn't matter if the home was now worth double the original value we had to pay pmi until the loan amount owed hit 54,080. I asked her well werent we there yet?? She said just a few dollars off. I was told to submit a letter asking to drop it and they would likely make me pay 250 for a new appraisal. So I submited the letter with the next payment.

I recieived my letter yesterday. They dropped the PMI no appraisal needed. So there is an extra 24.97 a month to go for CC debt.

However I think the terms of that PMI contract stunk! My girlfriend bought a year after us and financed with the same bank. Her PMI was dropped at 20% of current value not 20% of orriginal loan/to oringinal appraisal.

No one to blame but DH and I for bein unexperienced buyers and not reading what we were signing!

**PrairieRose** · 10-25-2005, 02:39 PM

Ugh, I hate PMI insurance. I'm glad you got it dropped.

**nodmicks** · 10-25-2005, 04:06 PM

You know though reading the original paper we signed ~ it stated that you had to meet certain terms, and submit the bank in writting. The bank will not notify you you are elidgible.
I wonder if people inadvertantly pay the pmi longer than needed because they don't know its their responsibility to ask for it to be stopped.