Posted on: 08th Jan, 2014 12:19 am
We bought a $175k home with 5%. Its a FHA loan and we had to go for a PMI. Recently, we did some home renovations. Is it possible for the bank to re-appraise the property and cancel the PMI?
As per the new rules of FHA mortgage, you will not be able to get rid of the PMI. However, if you refinance the FHA loan into a conventional mortgage, then you might be able to get rid of the PMI.
No, you will not be able to cancel your PMI as per the FHA mortgage loan clauses.
Any loan written prior to June 2013 can petition for removal of the PMI after both have happened - 5 years have passed AND you have a loan to value of 78% of the original purchase price. To eliminate PMI prior to this would require refinancing using the new appraisad value, into a conventional loan. If you have 20% equity at the time of refinancing no PMI will be required
Brian Barnes
ENG Lending
Nationwide Lender
Brian Barnes
ENG Lending
Nationwide Lender
