My lender, US Bank, is refusing to terminate my PMI even though I am now below the 78% loan to value ratio. We've been perfect customers and have never missed a payment. Their reasoning is that they don't have to automatically terminate until my originally scheduled date I would have hit the 78% threshold, if making the regular minimum payments every month - not until May 2018. I've paid more than required each month and therefore have hit my date earlier. I have been paying this mortgage for 9 years at this point.
They have said the only way they will consider removing PMI is if I pay $150 for an appraisal and prove the original value has not declined. However, we know our property value has dropped at this point.
Any advice? It seems unbelievable that after being diligent customers for 9 years and paying more than required, we would be penalized and forced to continue paying PMI despite a loan to value ratio is now lower than 78 percent.