Can i remove PMI if appraisal is high

4 Replies

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.

Originally posted by @HJ Wang :

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?

 Best summary of when you can cancel PMI that I've yet to see.

@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.