Question: Do I have to wait to remove PMI? We've had insane appreciation on the homes in our area.  Base prices are now $40K higher than when we bought, I'm very certain with a new appraisal we'd have 20% equity already (been in the house for eight months).  Our lender states that we have to have the loan at LEAST two years.  This is true, or something they're forcing us to do?  Even if they do back down on that one, can't they say the 20% has to be off of the original price of the house, not the new appraisal value?  Refinancing with a new appraisal isn't an option with the rates having gone up and having paid two points at closing.  Do I have to abide by their rules and wait 2 years?  Other options?

Answer: As Loan Administration Manager at a lending institution some years back, we would consider (and usually approve) deletion of mortgage insurance IF \na) the customer had a good payment history, \nb)  if he/she paid for a new appraisal -- from the appraiser of OUR choice AND\nc) the loan-to-value ratio (based on the new appraisal) was less than 80%.\nHowever, that was  number of years ago and times may have changed since then.  \nI would recommend that you contact your lender and make such a proposal.  The worst thing that can happen is that they will deny your request.
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