Re-finance a Duplex that has PMI (loan, interest rate, requirements, loan)

[PineDuplex]

Hello,

I bought a duplex in the Milwaukee area in Spring of 2007. (5 years ago) When I bought it, I lived in it. I put 5% down when I purchased it at 168k. I have PMI and a 6.1% interest rate. I have never missed a payment and am not at risk of missing one.

I purchased a single family home (in 2009) as I now have a family. I kept the duplex as an investment property. With the current interest rates so low I would like to get a new loan. The issue I have ran into is banks saying they don't touch investment properties that are over 80% loan to value. (Which mine probably is as I owe $150k).

I have put some updates into the property but not enough to get me to 80%. I have asked a few banks and they have told me banks won't refi this loan.

I am confused as to why? I have a very stable job (worked for the same company for 9 years) and have never missed a payment. If I were to own a bank, this would be the exact person I would be looking to lend money too.

Does anyone know of a bank/lender who would do a refi on this property for me? One bank told me to talk to a mortgage advisor as they have access to more lenders and potentially less requirements than some banks.

[Debsi]

Investor loans have tougher standards, especially as regards to LTV. For instance, most of the Fannie Mae LTV charts require 75% LTV.

If your loan is owned by Fannie Mae now though, you may be eligible for a Refi Plus loan which would remove the normal LTV restriction. Do you know the investor of your loan?

I think Freddie has the same program too, but you're probably out of luck if you have a loan owned by a private investor.

[399083453]

Under the Homeowner’s Protection Act, your mortgage lender is legally required to cancel your PMI coverage once you pay down your mortgage to 78 percent of the principal, as long as you are up to date on your payments and do not have an FHA loan.

Sooo... keep payin.