It is still a bit complicated to get PMI removed.
Loan originator has nothing to do with it.
The PMI is a 3rd party insurer.
Refinancing to save .25% was worth it and better for you.
If you can afford it, keep making your original loan payment on your previous loan and you could shave several years off of your mortgage term. More money will go to principal each month, less to interest.
The guaranteed compounded savings is huge.
For FNMA/FREDDIE
A 20% reduction of your original loan balance you usually need to jump through hoops and pay for an appraisal.
At 22% reduction of your original loan amount it is supposed to be removed automatically (regardless of property value) but some insurers have a minimum time period, (i.e. 2 years)
Because there was a time that “real estate never went down”
the guidelines stated that removing PMI was based on the reduction of your original loan balance; so it was possible with property value declines to be upside down on the value of your property but still get PMI removed.
Recent FHA loans may never have MIP removed, it will stick with the loan until paid off up to 30 years.
