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Followed Edith’s Advice |
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Dear Edith: I put only 15 percent down on my home so I had to carry PMI mortgage insurance.I had been prepaying principal quite a bit.I wrote the company about dropping the insurance after I had prepaid my mortgage down to about 60 percent of the purchase price (let alone the value), but I couldn't get anywhere.They said I needed to spend $1,500 on an updated appraisal, which made no sense. It was something like $22 a month being wasted on the premium, which was a ton of money to us at the time (and still is a lot to just throw away).
Anyway you wrote to some fool like me but who had a slightly different complaint, and told them to write the President of the company they had the loan with.
So I did that with a history of my account and Fed-Ex'd it.Within two days I received a call from the President's assistant saying the PMI requirement had been removed and an apology.Then I got a handwritten note from the "boss man".
I thank you for your advice and keep up the good work! |
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Your lender wanted a new appraisal because the law requiring them to drop PMI says sufficient equity must be calculated from the original price or current value, whichever is lower.Even in boom times, it is theoretically possible that the value of a property has dropped, so that the owner still wouldn't have the required 20 percent equity if the property were sold today.
I’m surprised you were able to eliminate the new-appraisal requirement just by going straight to the top, but hey, whatever works! |
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Edith
Originally published on January 6, 2006 |
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