Posted on: 19th Nov, 2010 09:26 am
Hi, I oiginated my loan with Bank of america back in 2007, my property was appraised at 77,000 & my original loan amount was 55,000. I did not give a down payment but due to that I was forced to get PMI is this legal?
YES, IT IS LEGAL. HOWEVER, PMI PREMIUMS CAN OFTEN BE REMOVED FROM YOUR MORTGAGE IF YOUR LOAN BALANCE IS BELOW 80% OF THE CURRENT MARKET VALUE OF YOUR HOME. DUE TO TODAY'S MARKET, YOUR HOME VALUE MAY NOT BE WHAT IT WAS IN 2007. IF YOU FEEL THAT YOUR LOAN BALANCE IS 80% BELOW THE CURRENT MARKET VALUE OF YOUR HOME, YOU NEED TO CONTACT YOUR LENDER AND REQUEST THAT THE PMI BE REMOVED. (THEY WON'T AUTOMATICALLY DO IT FOR YOU). THEY WILL RE-APPRAISE YOUR HOME & IF THE CRITERIA ARE MET, THEY WILL END THE PMI.