I will start by saying that I work in mortgage servicing, so please be as specific as possible, I will understand just fine.

that being said, I have a question that my own Mortgage Insurance department was unable to answer for me. my wife and I bought a home about a year and a half ago. Home appraised at sale for $90,000 we financed roughly $73,600. We have about $71,500 left on it. we got an FHA loan on it, and we only put down 3.5%, so we had to have PMI.

first of all, I understand that this is only required when the LTV is greater than 80%, not the case with our loan, as we had roughly 22% equity in the property. I have been told that it is based on the loan origination and the UPB, not the appraised value and the UPB.

My question is, can I refinance and drop my PMI because of the equity I have in the property, or am I doomed to have PMI until I meet all the criteria?


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