Bought a brand new building dwelling in April of 2021 for 381k. At closing, they assessed the worth at 380k. We positioned 10% down and received a standard 30 12 months mortgage @ 2.99%. We pay $100 PMI. We at the moment owe 329k.
With the market increase, the home worth has elevated considerably. Comparable houses on our avenue have bought for 550-650k lately. We reached out to the financial institution holding the mortgage and requested if it was doable to eliminate PMI for the reason that LTV needs to be properly beneath 80%… 329k/420k (conservatively) places it at 78%.
The financial institution mentioned we must refinance however clearly the rates of interest are double now, so we don’t wish to do this. Another choice was to pay about $400 to get a brand new appraisal performed, however they informed us we needed to wait 2 years. Additionally, we’d have to point out proof/receipts that we’ve made upgrades to the house.
My query is: does that appear proper? Ought to I not be capable of get an appraisal performed any time? Why do I’ve to attend 2 years? Are they simply attempting to pull us alongside a bit to gather as a lot PMI as doable first?