Hello,
If you are paying PMI....
When you equity increases in value to 20% will you need to refinance to get rid of PMI or just have the house re-appraised?
2007-01-16 00:33:46 · 8 answers · asked by Bean 3 in Business & Finance ➔ Renting & Real Estate
If you paid off the laon to equal 20% equity from what the ORIGINAL value of the home is, it's automatic.
If your house is simply worth more now and thus you owe less than 80% of the value, you need to purchase an appraisal and send it to your bank. Call them first and ask what their procedure is to verify this before spending the money!
2007-01-16 03:14:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
We were told that you had to have 20% down/equity in the house at the time of purchase to avoid PMI, but to get rid of PMI once you already have it, you actually had to have 22-24% equity built up. Double check with your lender to make sure it's 20%, and they should be able to tell you what to do next.
2007-01-16 02:40:46 · answer #2 · answered by aj1020 2 · 0⤊ 0⤋
The PMI will come off automatically once your loan is under 80%. That is not of the value of your home. It is based on the amount outstanding onthe loan so if it is not done automatically, call your lender.
2007-01-16 04:01:59 · answer #3 · answered by CEESONE 4 · 0⤊ 0⤋
The PMI will come off automatically once your loan is under 80%. That is not of the value of your home. It is based on the amount outstanding onthe loan so if it is not done automatically, call your lender.
Best Regards,
Jossi J Edwards
http://jossiedwards.point2homes.biz
2007-01-16 01:53:46 · answer #4 · answered by edwarjd 3 · 0⤊ 0⤋
You can also request to have your PMI removed after making payments for 12 months, whether or not you are under the 80% mark.
2007-01-16 03:55:40 · answer #5 · answered by Justin 3 · 0⤊ 0⤋
Most loan contracts will stipulate that you must pay for an appraisal before they will agree to remove the PMI.
It's money well spent. Just be sure to explain to the appraiser why you are employing them. They will give you an idea if your home has appreciated the 20% needed, before they actually do the work and charge you the fee. It would be a mistake to just pay them and hope for the correct amount, hedge your bet a bit by fishing for the anticipated value.
2007-01-16 00:41:22 · answer #6 · answered by Anonymous · 2⤊ 0⤋
Notify the lender if it doesn't happen automatically. You don't need to re-fi but check the interest rates anyway.
2007-01-16 00:36:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
either one. you will have to pay for the appraisal
http://www.choicefinance.net/faq/what-is-PMI.htm#PMIbill
2007-01-16 03:41:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋