Husband and I purchased a house in 2015. We took out an FHA loan and put down approximately 4% on a loan amount of $179,000. Of course, this meant we would need to pay PMI. We understood that once the value of the home is appraised at 20% above the outstanding balance of the loan, we could have another appraisal done and have the PMI removed.
Recently, the value of our home has greatly increased, and certainly reaches this threshold (granted, we have not had a formal appraisal done, but houses in our area are now selling for upwards of $240k, and we have an outstanding loan amount of $170,000) We have been getting the runaround from our lender, who finally told us today that due to FHA regulations and our making a down payment of less than 10%, we are stuck paying PMI for the life of the loan, unless we refinance. It is worth nothing that this company is not the original lender - our loan was sold shortly after closing.
Is this the case? Are we really stuck having to refinance? Is there anything else we can do?
EDIT: Thank you all for answering my question. Appreciate it!
Submitted June 06, 2017 at 10:12AM by SheStillMay http://ift.tt/2sOHOMq
