if my house was bought at no money down at 95,000 and it was appraised at 115,000 and i have pmi could i get m

Question

if my house was bought at no money down at 95,000 and it was appraised at 115,000 and i have pmi could i get my house apraised again and if it worth 115,000 still could i get my pmi tooken off they say u got to pay off 20%of the loan or have 20% of equity is that true

Answer 1

You must have 20% equity in your home to get PMI removed. This is true.

Answer 2

To answer your question, "typically" yes if you have at least 20% equity in your home then your lender may remove the PMI from your loan or you may have to do a refi with your current lender to remove the PMI. Not all 100% financing has Borrower Paid Monthly MI, some have lender paid MI, but the lender will make that up somewhere and most of the time it is in your rate. If you wish to explore your financing options, I can also help, just email me.

Clinton Shepherd
Wachovia Home Loans

Answer 3

You had to pay PMI because you made no down payment, so your lender had to insure themselves against your risk; of course, you are the one to pay for the risk you put them in lending you money with no down payment.

Even if you home is appraised and has appreciated, you still have to pay back the loan you owe. For most banks you must pay off 20% of the loan or have 20% equity on the house.

The appraisal value of a property, even an appreciated value is not a real gain, unless you decided to sell the home and got capital gains in that amount. Homes never sell for their appraised values, they usually sell for less, rarely for more. This is why the lenders/banks won't bet on your appraisal home values.

They will only bet on you paying off 20% of the principal of the loan or on you having 20% equity. By the way, most residential home loans are principal and interest loans. In the first few years, usually first 5 to 7 years you're actually paying off the interest rate before you even begin to pay the principal of the loan.

So, once you pay off 20% of the loan(principal) or accumulate 20% equity, meaning you've already paid a cumulative total of 20% of the principal/loan, then most banks will take off the PMI.
This ends up being a lot more expensive than raising a higher down payment.

This is why most financial planners and accountants will recommend that you raise at least 20% deposit before you buy a residential home. Investment properties operate differently and with different types of loans.

Answer 4

if you have 20 pct equity, you can remove pmi , your mortgage company will probably require you to pay for appraisal from a company they chose, if you have less then 20 pct you may also qualify to reduce your pmi,but check with your accountant because i believe pmi will be deductable in 2007 so you may be able to afford to wait another year before you do and take the tax deduction while they allow it.

Answer 5

No late payments for 12 months.
New appraisal showing 20% equity.
Request it in writing.

BAM! No more PMI.

Answer 6

No, you must have a full 20% equity in the home, BUT in order to have PMI removed at the 20% mark, you must request it. Otherwise they automatically remove it at 22%,

Answer 7

I think you have to pay off 20% of the loan amount, not the appraised value a few years later. If you think you can get a better deal on interest rate, you can refinance it.

Answer 8

you will have to wait at least 12 months before you are eligible to lower your PMI (unless you refi).

Answer 9

use a different lender and get a second for the difference and save your good interest loan on the 1st if that's the case.

Answer 10

you can get the general property value of your house in relation to your area but going to http://www.doiop.com/realestate and inputting your zip code.