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Private Mortage Insurance
When we purchased our house we were told until our balance is less than 80% of the appraised value or original loan value we would have to pay PMI. However the property value just increased and we are at 79%, but our lender is refusing to remove the PMI giving all these loophole reasons and saying we have to have their appraiser come at our cost that the Tarrant county appraised value doesn’t matter. Can they do this? How do we get around it?
Asked on May 12, 2009 under Real Estate Law, Texas
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
You should take your mortgage papers, including and especially the PMI documents, and any letters you've sent to or gotten from the mortgage company, about the PMI, to a Texas real estate attorney, because that's the only way to get a reliable answer to your questions. One place you can look for the lawyer you need is our website, http://attorneypages.com
I am not a Texas lawyer, but from a brief review of some internet sources, the business about requiring you to hire their appraiser first does not sound right. It's the sad truth that some people will not do the right thing on their own. I can't say if that's the case here, because the contract you have with the lender might allow this. There's a lot of "fine print" in a mortgage contracts, but there are also federal and Texas laws that put limits on PMI requirements. A lawyer who knows this area of the law, in your state, and who has had a chance to see the paperwork, will be able to cut through any nonsense.
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