Originally Posted by
Milk Man
Thanks, I called the lender and was told at least 5 yrs. My home value has increased significantly just based on the houses around me that have been listing for. I have not had an appraisal to see what my house is worth, but was told at the 5 yr mark I will be able to get an appraisal and if the house has increased in value that will make my loan 20% paid off from the new appraised value then I will be able to remove the PMI. My PMI is $182/mo.
The value is always based what the nearby comparable properties sell for, called comps. Either your realtor, the one who helped you buy the home, or any local realtor, should be able to pull comps in your area and make a very good estimate of value.
If you are paying that much for pmi and the value of property has increased, then I'd suggest that you should seriously explore the option to refinance.
If your value shows a 20% equity, then it makes perfect sense to refinance into a 30 yr conventional. Even if you have 10% equity, it will be cheaper to refi.
There are a lot of options at no cost to borrower, where the lender waives or eats the lender's fee & even pays the closing fees. It could mean a minimum of $182 payment reduction per month for you.
What state is the property in & what is your interest rate??
If you don't want to share these details on the public forum, pls feel free to pm me...