By the book, the answer is no, but in effect I think it could absolutely matter. Appraisers are in & out of houses all day, assigning values. You can imagine they would lean at least a little bit lower if the presentation (meaning cleanliness) is poor. Hope that helps!
Can’t emphasize this any more! We paid $500 for an appraisal to save around $25k removing PMI. A small bright spot in an otherwise tumultuous housing market.
I purchased my condo in New Hampshire in March 2021 with less than a 20% down payment hence I pay PMI. The property's appraised value at that time of the purchase was $222,000. Fast forward to June 2023 and condos in my complex are selling in the $289,000 to $295,000 range. Based upon this scenario, I have requested my lender consider dropping PMI. They have scheduled a property appraisal next week. The current balance on my conventional home loan is $208,000. I am crossing my fingers and toes that I can convince them to drop PMI.
Sorry I'm just responding to this now, but I figure it's worth asking how that PMI appraisal went! Thanks again for watching/commenting. Hope it was helpful.
Hello Craig. My situation worked out beautifully. My lender dropped my PMI requirement after the successful appraisal. Cost me $450 for the appraisal but PMI elimination saves me $87 per month. I am satisfied> @@powerrealtyadvisors
@@powerrealtyadvisors The lender had an appraisal conducted which cost me $450 but they did remove the PMI saving me $87 per month on my mortgage payment. The value of my condo keeps increasing. At the moment I could easily sell the place for $320,000. Thank you for posting your presentation and letting folks know that you can rid yourself of PMI.
Interesting thought. That is a question I don't have the answer to from experience. But I can check into it. Given the last few years of equity gains it seems pretty unlikely, but I might be biased because my local market is bananas. To be clear, are we talking residential or commercial property?
What happens in appraisal if the listed home improvement doesn’t have permit. Let’s say nothing major like structural changes, but some fixtures and plumbing work. Should you not list the improvement at all to keep it under the radar?
For the purposes of the appraisal to get out of PMI, I would list it. My answer would be different if you were selling the property. I'd recommend being very upfront to a potential buyer.
What if I realized the home was appraised 20% higher than the loan was originally? I bought my home for 250k, and our home was appraised for 317k at time of purchase. Can I use that appraisal to ask for a removal, or do I still need a re-appraisal?
Yes absolutely, that's often a top reason for a refinance. You'll be at the mercy of today's interest rates so sometimes it still doesn't make financial sense (even when eliminating PMI), but to answer your question, yes. You could always use the same lender too, if you wanted.
What happens if you are successful in getting PMI removed and sometime in the future the value of your property plunges because of changing market conditions? Can the lender re-instate PMI?
Nope they can't do that. They've already insulated their risk up to that 20% equity mark, that's plenty of cushion for them. If they could reinstate it, it would make the whole thing really arbitrary.
Does the New appraised value of the home get reported to respective county appraisal office where the property resides? if so, does this new value increase the property taxes in your mortgage?
My LTV currently at 74.42% of original loan amount, conventional loan. PMI $81.94/month, don't want to pay a $600 appraisal to remove pmi. Lender refuses to cancel pmi without an appraisal. The Homeowners Protection Act of 1998 calls for automatic removal at 78% LTV. Do I really need to pay for an appraisal even though my LTV is at 74.42?
The PMI already paid, no you cannot unfortunately. Unless there was some error made in your payment structure, which would be an issue to handle directly with your mortgage servicer.
Does a messy house effect the appraisal for PMI removal?
By the book, the answer is no, but in effect I think it could absolutely matter. Appraisers are in & out of houses all day, assigning values. You can imagine they would lean at least a little bit lower if the presentation (meaning cleanliness) is poor. Hope that helps!
@@powerrealtyadvisors thank you.
Can’t emphasize this any more! We paid $500 for an appraisal to save around $25k removing PMI. A small bright spot in an otherwise tumultuous housing market.
Amen brother. A lot of people don't even realize it's an option!
I've been trying to understand the LVT threshold, and this was by far the most helpful. Thank you so much!
My pleasure, glad it helped and sorry for my late response!
I purchased my condo in New Hampshire in March 2021 with less than a 20% down payment hence I pay PMI. The property's appraised value at that time of the purchase was $222,000. Fast forward to June 2023 and condos in my complex are selling in the $289,000 to $295,000 range. Based upon this scenario, I have requested my lender consider dropping PMI. They have scheduled a property appraisal next week. The current balance on my conventional home loan is $208,000. I am crossing my fingers and toes that I can convince them to drop PMI.
Sorry I'm just responding to this now, but I figure it's worth asking how that PMI appraisal went! Thanks again for watching/commenting. Hope it was helpful.
Hello Craig. My situation worked out beautifully. My lender dropped my PMI requirement after the successful appraisal. Cost me $450 for the appraisal but PMI elimination saves me $87 per month. I am satisfied> @@powerrealtyadvisors
Were you able to get it removed?
@@powerrealtyadvisors The lender had an appraisal conducted which cost me $450 but they did remove the PMI saving me $87 per month on my mortgage payment. The value of my condo keeps increasing. At the moment I could easily sell the place for $320,000. Thank you for posting your presentation and letting folks know that you can rid yourself of PMI.
What happens if your appraised value is lower? Would they re-adjust the LTV?
Interesting thought. That is a question I don't have the answer to from experience. But I can check into it. Given the last few years of equity gains it seems pretty unlikely, but I might be biased because my local market is bananas. To be clear, are we talking residential or commercial property?
Very helpful thank you so much!!!
I'm glad it was helpful!
Would a monthly PMI ever lower? Example: You refinance to a lower interest rate but not hit that 20% just yet so the PMI is still there.
Great information!
Thank you! Your comment slipped through the cracks on me, so just wanted to say thanks!
thank you
Thanks for watching!
What happens in appraisal if the listed home improvement doesn’t have permit. Let’s say nothing major like structural changes, but some fixtures and plumbing work.
Should you not list the improvement at all to keep it under the radar?
For the purposes of the appraisal to get out of PMI, I would list it. My answer would be different if you were selling the property. I'd recommend being very upfront to a potential buyer.
What if I realized the home was appraised 20% higher than the loan was originally? I bought my home for 250k, and our home was appraised for 317k at time of purchase. Can I use that appraisal to ask for a removal, or do I still need a re-appraisal?
Is a Fanny Mae loan a conventional loan ?
If I have the equity, can I refinance early (such as after one year of ownership) with a different lender to get rid of PMI?
Yes absolutely, that's often a top reason for a refinance. You'll be at the mercy of today's interest rates so sometimes it still doesn't make financial sense (even when eliminating PMI), but to answer your question, yes. You could always use the same lender too, if you wanted.
What happens if you are successful in getting PMI removed and sometime in the future the value of your property plunges because of changing market conditions? Can the lender re-instate PMI?
Nope they can't do that. They've already insulated their risk up to that 20% equity mark, that's plenty of cushion for them. If they could reinstate it, it would make the whole thing really arbitrary.
Good question though, I had never even really considered it!
Does the New appraised value of the home get reported to respective county appraisal office where the property resides? if so, does this new value increase the property taxes in your mortgage?
No it does not, that appraisal is only specifically for the mortgage company.
He is correct here! And sorry for the delayed response. Tax assessed value is a process independent of this.
My LTV currently at 74.42% of original loan amount, conventional loan. PMI $81.94/month, don't want to pay a $600 appraisal to remove pmi. Lender refuses to cancel pmi without an appraisal. The Homeowners Protection Act of 1998 calls for automatic removal at 78% LTV. Do I really need to pay for an appraisal even though my LTV is at 74.42?
Not if you're at 74.42%. You're beyond the threshold. Get something in writing from the lender because that should be removed!
Can you get some of that PMI back?
The PMI already paid, no you cannot unfortunately. Unless there was some error made in your payment structure, which would be an issue to handle directly with your mortgage servicer.