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I have a loan with PHH and my loan ratio has reached 77.7% last month. I contacted them to inquire about why the PMI has not dropped off for my payment this month. I was told that it was not scheduled to drop off for several more months based on the "initial amortization" schedule that was anticipated when we did the initial loan. Because I have paid extra some months I reached the required <78% sooner. They told me I would have to get an appraisal and submit a request for "early cancellation"? Is this legal? I thought the goal was to reach less than 78%...not reach a specific date. We have had the loan for almost 5 years and have never missed a payment. It's not even about the money at this point but what seems like kind of a shady practice in general.

marked as duplicate by Hart CO, Chris W. Rea, JoeTaxpayer Apr 3 at 17:37

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Note: I believe this exact question was already answered, and this will likely be closed as duplicate.

Yes, PMI gets removed at the 78% LTV at the time of original amortization. If that occurs sooner due to additional payments, it’s tougher to remove, an appraisal paid by homeowner, might be required.

It wouldn’t be tough to imagine one getting through a closing, 10% down and then raising the 10% to get to 20, by an unwise means. In effect, now having a 90% LTV, but with a high rate loan mixed in.

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