Legal Question in Real Estate Law in Florida

Re: Cancellation of PMI from Mortgage

PMI is designed to protect the lender when the buyer has less than a 20% equity interest in the property. If the loan amount is 80% or less than the property's market value, then PMI should not be an issue. Find out the name of the appraisal companies approved by your lender, make sure to select one of them to perform the appraisal, and if the appraisal demonstrates that PMI is unnecessary, provide a copy of the appraisal report to the lender, and demand that PMI be immediately set aside. If this matter concerns a new purchase, generally the lender will order the appraisal and provide you with an original appraisal report on or before closing. If the circumstances suggest that PMI should not be applied, and the lender insists on the PMI over your well-founded (and document supported) objection, seek the advice of qualified counsel. Good luck.