I purchased a rental house in California a few years ago and put 10% down. This required me to have a PMI which is about $160/month. I was told by the loan broker that as soon as the house appreciated to where I had about 20-25% equity I could have the PMI taken off. Well that happened within less than 6 months. I called the mortgage company and they sent me a letter stating I had to wait 2 years before I got the house re appraised to get the PMI taken off. So I thought okay no problem I guess I will just wait 2 years. Now after the 2 year period I contacted them again and they sent me a letter again this time it says I need to have have a LTV of 70% but the kicker is new appraisals will not be accepted to lower the LTV to the required 70%. So basically what I have to do it send them a big check to get this $160/month fee taken off.
Is there anything I can do? Is this legal for them to make me keep the PMI even though the house has almost doubled in price?
Is there anything I can do? Is this legal for them to make me keep the PMI even though the house has almost doubled in price?
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