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To: texas booster
In addition, the newest rules from a couple of years ago mean that PMI is no longer dropped once the lender pays below 80% of the original loan.

Folks don't like PMI, but it's there because historically, if a borrower has less than 20% down, it's easier to walk away from a house, leaving the mortgage company in the lurch. At the Credit Union at which I work, it's dropped after the LTV based on the original value goes below 78%. However, if a borrower believes the home value has risen sufficiently to make the LTV below 80%, he or she can request an appraisal, at his or own expense, and if in fact the value supports it, the PMI can be dropped.

30 posted on 05/21/2017 5:42:05 PM PDT by SuziQ
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To: SuziQ
Is this reappraisal to drop PMI common across the commercial banking industry? A reappraisal would then pay for itself in just a few months.

I have also been looking to move my loan away from a megabank, and prefer a local CU. I thought that all of the CU bundled their home loans together and resold them, just like any other lender.

31 posted on 05/22/2017 5:12:57 AM PDT by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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