We are in a similar boat. We purchased with an FHA loan. Last refi was in 2012 which was before the requirement to keep PMI for the life of the loan. Our loan required 5 years of PMI no exceptions. We are coming on our 5 year mark in December and have started asking our lender what the process is to remove PMI. Lender states that he has only seen this done in a refi. We don't want to refi as we have a great rate. Additionally, we just got a HELOC on the property and had an appraisal done and our LTV ratio is significantly less than 80%. Anyone had a similar issue and how did it work out?

Anonymous wrote:Those of you that dropped PMI did you have an FHA loan? I am pretty confident that we are at about 20 percent, but it is my understanding we need to keep PMI for the life of the loan. We are looking into refinancing.

Bought in 2015, and our FHA is 20% or 5 years.

Those of you that dropped PMI did you have an FHA loan? I am pretty confident that we are at about 20 percent, but it is my understanding we need to keep PMI for the life of the loan. We are looking into refinancing.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here, thanks. I don't know if the lender will bother asking me about my upgrades since it's based on a re-appraisal (and I assume the appraiser will take into the account the condition of the home, including upgrades/renovations). I have my calendar set to remind to request PMI removal exactly 24 months from loan closing.

Appraiser won't care about cosmetic upgrades. The only thing that will add value from an appraiser's standpoint is whether you added rooms or bathrooms above grade. So, for example, any basement renovations won't really matter.

That's not true. Our basement was unfinished. When we finished it and added another legal bedroom & bathroom down there, our appraiser accounted for that in a big way.

You ADDED rooms from unfinished space. That adds value. I think the PP was using renovate like new paint or new fixtures. Adding rooms from unfinished space is different.

Right, but the PP specifically said only rooms ABOVE grade will count, and that appraisers wouldn't consider any basement renovations.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP here, thanks. I don't know if the lender will bother asking me about my upgrades since it's based on a re-appraisal (and I assume the appraiser will take into the account the condition of the home, including upgrades/renovations). I have my calendar set to remind to request PMI removal exactly 24 months from loan closing.

Appraiser won't care about cosmetic upgrades. The only thing that will add value from an appraiser's standpoint is whether you added rooms or bathrooms above grade. So, for example, any basement renovations won't really matter.

That's not true. Our basement was unfinished. When we finished it and added another legal bedroom & bathroom down there, our appraiser accounted for that in a big way.

You ADDED rooms from unfinished space. That adds value. I think the PP was using renovate like new paint or new fixtures. Adding rooms from unfinished space is different.

Anonymous wrote:

Anonymous wrote:OP here, thanks. I don't know if the lender will bother asking me about my upgrades since it's based on a re-appraisal (and I assume the appraiser will take into the account the condition of the home, including upgrades/renovations). I have my calendar set to remind to request PMI removal exactly 24 months from loan closing.

Appraiser won't care about cosmetic upgrades. The only thing that will add value from an appraiser's standpoint is whether you added rooms or bathrooms above grade. So, for example, any basement renovations won't really matter.

That's not true. Our basement was unfinished. When we finished it and added another legal bedroom & bathroom down there, our appraiser accounted for that in a big way.

Yes. We had about $200/mo. in PMI.

Appraised 3.5 years after "buying." Had done no improvements. House had increased by $100k.

Dropped the PMI.

It was easy. One phone call to the bank, one appointment with the appraiser, done.