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Originally Posted by SouthernGirl
you signed a weird loan newbreed. most cases if the equity in your home reaches 20% of the home's total value, your PMI can be dropped. The theory being that even if you default on your loan, the equity you will lose is compensation enough for the mortgage company. ie. they wont lose anything.
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That's funky, the last 3 mortgages I have dealt with were ALL based on the loan value, not property value, and they were 3 different finance companies. So although it may be "weird" to you, it's the way I have always seen it done here (in Ohio), and in the case of the house we just bought we put close to 20% down so PMI was not attached at all.
