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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I would never take a higjer interest rate  in return for no PMI. At least when your LTV hits 80% you can remove the PMI. I'd rather that than being locked into a higher than necessary mortgage for 30 years. You pay way more in the long run by essentially rolling PMI into your loan.[/quote]

You can remove the PMI, but don't you have to refinance?  If it takes 5 years to get 20% equity in your house, what's the likelihood that rates will be at 4.5%? [/quote]
Exactly. They won't be. That's why you can pay down your rate even though rate was slightly higher. [/quote]

This is all wrong. You don't have to refinance to remove the PMI. When you hit 20%, you can request the lender drop it - and they have to do so at 22% equity. That could be a combo of you paying down your principal [b]and the house appreciating in value[/b]. But whatever the case, your rate is your rate. We're paying 3.62% regardless, with PMI now and without PMI by next year. [/quote]

In my experience, the lender is not incentivized for PMI to be dropped. They will lowball your appraisal (that they'll make you pay for even though they choose the appraiser).

You pretty much have to refinance to get PMI removed.[/quote]

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