len@qumix.UUCP (Leonard Labar) (10/15/85)
Awhile back on the net someone posted an article that said something like: If you have an FHA loan and the loan balance or appraised value is such that you're covered for 20% of the loan, then you can contact your lender and ask to stop paying the mortgage insurance (PMI). It was based on a Jan. 1985 article in the Wall Street Journal. I don't know if different states rule differently but when I contacted my lender they said that California didn't have such a law. In essence they said I would always have to pay the PMI. Has anyone else had experience with this? I've considered waiting a year, getting a written appraisal and submitting it with a certified letter to the head office. Is it still worth my trying?