Hello all. Quick question. I attempted last year to refinance my owner occupied duplex. The point of refinancing was first and foremost to get rid of PMI. My home has appreciated in value (even with the current market), and I wanted to use my new appraisal to take advantage of the increased equity, get rid of PMI, get rid of automatic escrow (and do it myself), and lastly take advantage of interest rate savings.
After paying the appraiser, I was informed the bank would not close on my loan as we were in the middle of a siding project. By the time we could have finished the siding project and taken advantage the 90 day appraisal expiration date, the feds changed the law so that interest rates on duplexes were at a higher percentage. Sigh. So I was out the appraisal fee.
There has to be a workaround for this. I bought a fixer upper, so we are still working on projects. Right now I have a bathroom gutted.
I did try contacting my current mortgage holder, CITI, who bought my loan from my original lender, and they flat out refuse to honor the current appraisal.
Any tips, advice, anything? Aside from paying down about $9,000 to bring my LTV down, which I don't have sitting around, I feel stuck, and this doesn't seem right!
Always be prepared for the worst case scenario, and then expect the best case scenario!