A borrower recently called us to discuss his refi options. He had a 30 year fixed rate loan at 3.5%. He also had PMI that he wanted to eliminate b/c he now has substantial equity in his Bay Area home.
As much as we wanted the refinance business, we told him not to refinance but instead to petition his loan-servicer to get out of PMI. We could not match his 3.5% rate and we did not want him to lose that rate with a refinance to get out of PMI.
Once a borrower has his loan for over 2 years, and his equity cushion exceeds 20%, he can contact his loan-servicer and follow a series of steps to get out of PMI (and preserve his existing loan). These steps include the ordering of a new appraisal of course.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646