Nashville TN · Member since 2016 · 24 posts · 6 votes
Im purchasing a home and put 10%. So the house I bought is 440k. I put in 44k. Mortgage is 396K. The bank did the appraisal at 480K. making the balance to be 396/480 = 82.5%. So if I just pay additional 12k to get it down to 80% after the first month, do I need to redo an appraisal?
You can google it, but I believe there is a minimum time (2 years?) before you can use appraisal to remove pmi and the last time I checked you have to be at 75% LTV or below to remove pmi within the first 5 years, by appraisal.
@HJ Wang, you really need to check your loan docs. The policy will vary. I have PMI on my personal property and I have to get to 80% LTV of the LOWER of appraisal or purchase price to remove it.
Im purchasing a home and put 10%. So the house I bought is 440k. I put in 44k. Mortgage is 396K. The bank did the appraisal at 480K. making the balance to be 396/480 = 82.5%. So if I just pay additional 12k to get it down to 80% after the first month, do I need to redo an appraisal?
@HJ Wang, it really does depend on your lender. I'm actually about to begin the process of removing PMI thru an appraisal. My lender required at least 2 years before I could do this. They also have an option that if you have done significant improvements to the property you can remove pmi if you appraise to 80% LTV. If no improvements are done, the the 75% LTV mentioned above is required. I suggest calling the lender and asking.