List of Mortgage Companies

Home > Mortgage Bank Information > Mortgage Bank Knowledge Base > Should I have to pay my mortgage bank to cancel PMI?

Should I have to pay my mortgage bank to cancel PMI?

The principle of my mortgage just passed the 20% threshold where I can cancel private mortgage insurance. However the bank notified me that they would have to assess the property to the tune of nearly $300 before they will cancel PMI. Is that standard practice, or am I getting hosed? Leo F: It is for the appraisal, but the problem I have with that is that the PMI is for the bank's benefit, not mine. Why should I have to pay a cent to get that canceled?

Public Comments

  1. no thats unfair
  2. Tell them "that's not good enough" Tell them you already paid extra by having to pay the PMI penelty....They should just cancel it. Yet, again this is something you should have researched before you signed up for their mortgage as well. Most places just stop charging. Talk to all the management you can and don't stop till you see results. And, You can refi through another compnay, it will cost you upfront, but at least you won't be jerked around anymore. You are paying them, they work for you!
  3. Standard policy. Odds are you house also gained in value, making your equity even more than 20%.
  4. Hi, Most of the banks charge a marginal fee as service charges that you can't avoid. Checkout http://mortgage.creditmortgagepro.com for some useful info related to your query. Good luck!
  5. Ask them what the $300 if for, if it for an appraisal then no problem that's standard to have a home appraised for PMI deletion. If it not for an appraisal then that is not standard and bull.
  6. If it is for an appraisal make sure that you get a copy of it. That sounds like a very cheep price for an appraisal.
  7. No, there is a federal act that requires mortgage companies to cancel MI on your loan once you reach 78% LTV (loan to value). You may request they do so at 80%. Either way you may be required to have a current appraisal done to prove you have reached the required LTV, and so that the lender has an updated value and condition report of your property. The $300 they are asking for is the appraisal fee. This is standard, however you should ask them to verfiy this is what they are using this fee for.
Powered by Yahoo! Answers