Home > Ask The Get Out of Debt Experts > I Want to Get Rid of PMI But the Bank Wants an Appraisal. – Jody

I Want to Get Rid of PMI But the Bank Wants an Appraisal. – Jody

I would like to get rid of my PMI, I have paid almost 22% of my original loan value and now the bank is telling me that it can not be removed unless I pay $135 to have a broker come and appraise my home or I have to wait until the antipated date of 10/2014 of when the bank antipated that I would reach that I would have paid down the 22%. What can I do to force the bank to remove the PMI without paying for an appraisal?

Jody


Dear Jody,

It sounds fair and reasonable to me. A $135 appraisal is a great price. I just paid $400.

The bank isn’t going to remove the PMI (private mortgage insurance) unless the mortgage is less than 80% of the fair market value of the home. In the face of declining real estate prices there is no way to know if your mortgage balance is less than 80% without an appraisal. Otherwise we don’t know what the current value of your home is.

My advice would be to pay the $135 and get the appraisal if you feel your mortgage balance is 80% or less of the current fair market value of your home.

Please post your responses and follow-up messages to me on this in the comments section below.

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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  •  Dear Steve,

    $400 is the going rate to bribe your appraiser. 

    Sincerely,
    The Bubble from 2008
     

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