Mortgage co refusing to drop PMI insurance

[mscurlytop]

We live in indiana. We purchased our home in March of 1999. When we purchased our home we went thru FHA, which means we have been paying PMI insurance on our loan. We had an appriasal done by a certified apprasier for this state. The appraisal came in over the 20 percent equity we need to drop PMI insurance. Still the mortgage co. refuses to drop the PMI insurance on our home. They are telling us that since we are an FHA loan they do not have to drop this insurance. Is this true? I thought that if we could prove we have the equity we need in our home they had to drop it. Also we have been told that each state differs on the laws regarding this is this correct? Any help anyone can give us on this would be greatly appreciated. thank you so much.

 

[ALawyer]

I do not know INDIANA law but --

1. contact the FHA and ask

2. call your state's banking regulator and ask.

3. Ask the state attorney general's office

Also, the fact that 1 appraiser has said you're home is woth $X does not usually bind a bank or make it worth $X.

 

[mscurlytop]

pmi insurance

Thank you for your response. I have another question should I get another apprasial? How does that work, do they have to send thier own apprasier? I did not know the person that did the apprasial on my property. It was just done to see were we stood on equity in our home. Thnak you again!!

 

[ALawyer]

First find out the circumstances, if any, under which the PMI could come off.

If a top, highly respected appraiser said the house is worth three times the mortgage, and the lender still could insist on the PMI being in place, you'd have spent the money for nothing.