Getting rid of PMI

[800who]

I want to get rid of PMI quicker than waiting until I've made enough payments to reach 78% LTV for auto removal, I was pondering the idea of the fact that property values in my area have been steadily increasing, at what point should I consider getting an apprasial looking for the house value increasing to give me 80% LTV? I've only owned the house six months and put 3% down when I bought so I'm not expecting any time soon, but what should my procedure be and what's some advice people can share with this idea?

[Anonymous]

Depends on how much PMI you are paying. My brother has $58 PMI a month and he owns the house since April last year. Thanks to the stimu payments, he stated paying extra principal and now he is at 19.3%. He also makes $500 extra principal payments every month. Even i suggested him to get appraisal and remove the PMI. But his logic is that he will end up enriching the bank by paying more interest. So, he started to aggressively paying down his mortgage by paying extra principal whenever he can. 

[800who]

@Anonymous Thank you, my PMI is $110. Prior to making this post I had just adjusted my payment to include additional principal which is a great feeling. I am looking to take advantage of the current booming market.

[brk1971]

One caveat - if you only put down 3%, was that an FHA loan? I realize there are conventional loans that allow that low of a down payment, but just checking. With FHA, you'll have to refinance the loan to get rid of the MI this early...

[TJHOFF]

---

@brk1971 wrote:

One caveat - if you only put down 3%, was that an FHA loan? I realize there are conventional loans that allow that low of a down payment, but just checking. With FHA, you'll have to refinance the loan to get rid of the MI this early...

---

Correct, PMI now stays on FHA loans regardless of how far down you pay principle.

[800who]

@brk1971 @TJHOFF  30 conventional.

[Uppingmyscore]

Is this some new they just enacted? Anyhow mine PMI is scheduled to come off next month and I am so happy about that.  I will be taking that extra and paying towards the principal. 

[NC_Mtg_Loaner]

Conventional loans insured by FNMA and FHLMC are typically eligible for PMI to be removed when a new appraisal (paid for by borrower and ordered by current servicer) represents an 80% LTV.

Be careful if you are borderline--in the past it was hinted that lenders employed some type of shenanigans w/their in-house appraisers in order to ensure the appraised values weren't the highest.

(you the consumer can counter an appraisal if you have a knowledgeable agent that can help you obtain comps in your area though, so you may want to be prepared)