[quote=moneymaker]I’m not saying that the bank didn’t take risk, because they did, and I did as well. What I’m saying is they have no risk now. Well if things keep going as they are I guess it will only be 2 more months to get from 80% to 75%, I guess I could have wasted that $250 on something else equally stupid like buying chairs and painting them with a new $50 wagner paint sprayer, little tip (Behr paint goes on sale next week @ Home Depot, $5 off per gallon).[/quote]
Of course they have risk. You could lose your job tomorrow and stop making payments. If they have to foreclose on your loan they WILL lose money, even if they collect every penny of interest and principle. Interest rates could suddenly rise and the value of that loan they’re holding could go down (and because US Bank is a warehouse lender, more likely than not they’re not just servicing your loan, they DO still own your loan too). Inventories could rise and prices level out or even fall, reducing your equity and their protection. So as long as you still owe them money, they still have risk.
There’s always talk here of landlords being picky about their tenants. Should a landlord, with a tenant that has a good history of paying, refund their tenants deposit because of that good history? I doubt a single person on this board would suggest that a landlord ever release that kind of security. But you’re suggesting that the lender that agreed to loan you money, based in part on you paying for PMI as additional security, release that similar security. Given the volatility in home prices over the last 6 years, they’d be downright foolish to do so, absent a requirement in the loan document.
That said, US Bank is a warehouse lender. As such, they have greater flexibility in how they apply policy, and they are not written in stone. They’ll likely require you to pay for an appraisal, but if you think you have sufficient equity, formally request that they cancel the PMI. It was a different era, but I have had warehouse lenders make exceptions to their standard policies.
