Question by questions: I am paying PMI on my mortgage. If my home value reaches 20% in less than a year can I refinance out of PMI?
I am a 1st time buyer / new home owner who hasn’t even made the first payment yet “Sept. 1st”. I have PMI on my mortgage that I would like to get rid of as soon as possible. Most lenders require a year or two as good payment history before you can drop PMI. I have no pre-pay penalty on my mortgage so if I refinance with another lender in less than a year when my value exceeds 20% (basically there already) will the new lender require that I have been in my home at least a year or two with good payment history?
Answer by DJ B
There shouldn’t be any reason you wouldn’t qualify to refinance WHEN the value is 20% or more. Key is to that the appraisal come in correctly.
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