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Post by carolynhasacat on Aug 12, 2014 16:06:14 GMT
Does anyone have any experience getting a home appraisal in order to get rid of their mortgage insurance?
Just wondering what your experience was. How expensive was it? Did you get the result you were hoping for or did the appraisal seem lower than you were expecting? Higher? Did the appraiser give you advice regarding how to add value to your home?
We are trying to qualify out of the mortgage insurance and are wondering whether to add a deck or remodel the kitchen before the appraisal or wait to see if we need to do those things.
Thanks in advance for your advice.
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Deleted
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Oct 9, 2024 0:31:54 GMT
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Post by Deleted on Aug 12, 2014 16:50:53 GMT
Have house prices raised significantly in your area since you purchased your home? That's probably going to be the single greatest boost to your value over any renovations. Additions do add value, but not nearly as much as increased sales prices of similar homes in your area. A kitchen renovation will add very little to your appraisal value.
Take a look at the current market and try to be objective about which homes are comparable to yours. The closer in location the better. If sales prices are available, that's even better than listed prices (because the appraisal will be based on sales price).
Keep in mind with any sort of addition could also add to your property taxes (since you will likely need a permit and most counties use that to reassess the house), so it might be a wash between that and the PMI.
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Post by jeremysgirl on Aug 12, 2014 17:04:30 GMT
I thought now the only way to get out of PMI was to refinance??? I would love to know as I am researching things to buy a house in the future.
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Deleted
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Oct 9, 2024 0:31:54 GMT
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Post by Deleted on Aug 12, 2014 17:31:58 GMT
I thought now the only way to get out of PMI was to refinance??? I would love to know as I am researching things to buy a house in the future. Usually once you get more than 20% equity, the lender has the option to drop PMI. However, some have clauses that read differently.
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loco coco
Pearl Clutcher
Posts: 2,662 
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Post by loco coco on Aug 12, 2014 17:47:47 GMT
I thought now the only way to get out of PMI was to refinance??? I would love to know as I am researching things to buy a house in the future. I believe in June 2013 they made it where any FHA loan required mortgage insurance to stay for the life of the loan. We bought our house in September and I remember our lender telling us if we didnt hurry this would happen... and it did. We were in a situation where we couldnt "hurry" so we plan to re-fi in a few years. My understanding is before that you could hit 20% equity and it would be removed. |
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Post by micpea on Aug 12, 2014 17:50:29 GMT
We just purchased a home in July...no PMI for us as we put down more than 20%. One of our children just closing on their house this week are putting down 3%....they have PMI figured into their house payment. I believe our mortgage company said less than 20% requires PMI
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Post by carolynhasacat on Aug 12, 2014 18:15:34 GMT
Have house prices raised significantly in your area since you purchased your home? That's probably going to be the single greatest boost to your value over any renovations. Additions do add value, but not nearly as much as increased sales prices of similar homes in your area. A kitchen renovation will add very little to your appraisal value.
Take a look at the current market and try to be objective about which homes are comparable to yours. The closer in location the better. If sales prices are available, that's even better than listed prices (because the appraisal will be based on sales price).
Keep in mind with any sort of addition could also add to your property taxes (since you will likely need a permit and most counties use that to reassess the house), so it might be a wash between that and the PMI.
Thanks for the information. This is really great. Yes, the prices have gone up a lot since we purchased. A model the same as ours a few doors down was sold in May. Would that be our closest comparison? I'll have a look at the rest of the neighborhood/area to see what comparable houses were sold for. If our house appraised as high as that house sold for we would be within that 78% LTV range and be able to get rid of the PMI. |
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