MIP not PMI?

[Dark_Trainer]

What is the name of your state? Oregon

I recently called my lender to remove my (what I thought was) PMI. They said it was in fact MIP and I think the loan may be an FHA. They told me that I couldn't remove the MIP because it was not PMI. However the prior year I had received a letter in the mail telling me differently. The lady that I spoke to said she could see my signature and page where I signed the agreement for MIP. It did have a possibility to remove it after the ORIGINAL loan amount to principle hit 78%. Basically I needed to pay down the principle which wouldn't happen for another 9 years.

Is this normal? Sounds kind of like a scam banks figured out how to get around the laws regarding PMI? Would I have any case if I found this letter stating otherwise, even if my signature said I agreed to it? Just annoyed me since I was ready to get rid of that ugly $57 per month.

[lcannister]

Just annoyed me since I was ready to get rid of that ugly $57 per month.

Were you not annoyed when you sat there and signed the contracts agreeing to pay it?

Here is a link to a very general definition of the process and qualifications for removal of PMI/MIP I am linking to this one page only not the sidebar...

[url]http://www.dfw-appraisal.com/appraisal/PMI_Removal.htm[/url]

as is for informational purposes only so do some search engine work and you can find much more info as well.

[Dark_Trainer]

Yes, but I didn't know the difference. In fact, I have a call into our broker because I believed it was PMI still, I seem to remember asking if we could remove it at 80% by re-appraising our home. Our company was also bought by citi bank last year, so I have to dig out the paper work to confirm it all.

We'll see, I did find out it will auto terminate through, once I hit that 78% mark...at least it's not forever...just WAY longer than I hoped.