We have one SFH that has a loan that still has PMI. By my estimate, LTV is about 63%. Lender is PNC. I contacted them to see about requirement to drop the PMI. They require LTV of 70% and an appraisal through them at a cost of $620! The appraisal cost seems exorbitant, especially considering the PMI is only $38/month. Even at our original purchase price, current LTV is 69%. Anyone ever get PMI dropped on investment property without an appraisal? Thanks!

Pull out your loan docs and check the terms.

You can also drop snail mail to their cfo or CEO. Politely plead your case and see what happens.

What is your ltv based on the appraised amount for the loan?

Yes, on the 16 months.

Good advice... I should go back to the original loan docs and see what it says about PMI.

check with your state laws. In NC it must be terminated automatically with certain exceptions. This off the NC DOJ web site. Not sure if the site will let me post this large cut and paste.

PRIVATE MORTGAGE INSURANCE

If you put less than 20 percent down on your home mortgage, your lender may require you to purchase Private Mortgage Insurance (PMI). Private Mortgage Insurance protects the lender if you default on the loan. But did you know that federal law may allow you to cancel that insurance and avoid extra costs?

For home mortgages signed on or after July 29, 1999, your PMI must – with certain exceptions – be terminated automatically when you reach 22 percent equity in your home. To qualify, you must be current with your mortgage payments.

Your PMI also can be canceled at your request - with certain exceptions - when you reach 20 percent equity in your home. Again, your mortgage payments must be current.

Certain exceptions may apply if your loan is high-risk, if you have not been current with your payments during the past year, or if you have other liens on your property. Ask your lender or mortgage servicer for more information.

If you signed your mortgage before July 29, 1999, the law does not require your lender or mortgage servicer to cancel your PMI automatically. However, you can ask to have it cancelled once you exceed 20 percent equity in your home.

These protections do not apply to government-insured Federal Housing Administration or Department of Veterans Affairs loans or to loans where the lender paid for PMI.

New borrowers covered by the law must be told - at closing and once a year - about PMI termination and cancellation.

Mortgage servicers must provide a telephone number for all their mortgage borrowers to call for information about termination and cancellation of PMI.

I went to buy a short sale that had PMI. The lender worked the deal out that the FDIC and PMI carrier would cover 92% of appraised value at the time of the loan, not the lesser value of the depressed market when the loan was sold due to the bank closings.

Updates & answers ...

The original loan docs simply say that dropping PMI is subject to he investors requirements.

How did we purchase without 20% down? It was 2005 :)

As far as "moving" the loan? It's a conventional mortgage loan. Any "move" of the loan would be a refinance with costs that far exceed the $620 appraisal cost I'm trying to avoid.

I'm on hold with the mortgage company now. Hoping they can provide another option. Thanks for all the feedback.