By what standard does the lender use as “value”? My construction loan was just north of 80%, now that I’ve made sufficient payments to get under that percentages, my lender is telling me that my value was set by my construction cost, even though I paid for an appraisal and it far exceeds this value?? Any insight?
Bryan, lenders have their own guidelines for considering MI cancellation based on the current value of the home (as established by an appraisal as you have done), versus the original value established when you took out the loan. You may want to ask for clarification to find out exactly what mortgage balance level you need to reach to cancel MI.
