Question by Brian: When is PMI removed on an underwater refinance?
I am refinancing my mortgage which has PMI. The new mortgage will also have PMI. If we assume my property doesn’t drastically increase in value, when can PMI be removed from my mortgage (at my request):
a) When my refinanced loan balance is 80% of the first loan’s original amount.
b) When my refinanced loan balance is 80% of the refinanced loan’s original amount.
c) When my refinanced loan balance is 80% of my appraised home value.
Answer by the kid
It is removed based on what is in the contract, not a your request. Normally it would be once the loan is below 80% LTV (Loan to Value).
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