What are you looking for? 

Do I need an Appraisal to remove PMI

Author Message
shane

Guest







0.10 Dollars($)

PostPosted: Fri Jun 15, 2007 4:42 am    Post subject: Do I need an Appraisal to remove PMI

i had taken a fannie mae loan and paid off more than 20% of the original home value. I called up the mortgage company and it said that I need to pay $400 to get an appraisal done before they would remove the pmi. But isn't this done automatically when I pay off 20% of the original home value. Is it correct?
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
 
image
Alex12

Guest







0.10 Dollars($)

PostPosted: Fri Jun 15, 2007 4:46 am    Post subject:

Your mortgage company is right in asking for an appraisal to be done. The company wants to make sure that your home value has not changed. For instance, if you have made any repair work on your home or any improvement, then you may have to pay more so that your debt payments till now add up to 20% of the home value.
 
image
Icon Mini Profile colin
colin
Moderator

Joined: 30 Jun 2006

Posts: 602
Location: Waltham, Massachusetts


112.61 Dollars($)

PostPosted: Fri Jun 15, 2007 6:37 pm    Post subject:

Hi Shane,

Welcome to Mortgagefit forum.

If you have on time payment record for the last 1 yr. & your home is at least 2 yrs. old then pmi on the loan can be dropped after ltv goes below 80%.

Mortgage company must have given you name & address of local appraisers who are on their approved list. You will need to contact any of those appraisers to get your house appraised. Appraisal is required to confirm that you do have 20% equity in the house. The cost they have stated is quite reasonable at $400.

Colin
 
image
cuffel

Guest







0.10 Dollars($)

PostPosted: Fri Jun 15, 2007 6:54 pm    Post subject:

If your mortgage was closed on or after July 29, 1999 then your PMI will automatically get terminated when equity in your home reaches 22% of the original home's value & your payments are current. (hud.gov/offices/hsg/sfh/res/respapmi.cfm)
 
image
Augustus

Guest







0.10 Dollars($)

PostPosted: Thu Aug 16, 2007 4:28 am    Post subject:

My lender is insisting to do my home appraisal by using his appraiser. But can he force me to do so when I am removing my PMI?
 
image
Icon Mini Profile larry



Joined: 27 Jun 2007

Posts: 3051



428.03 Dollars($)

PostPosted: Thu Aug 16, 2007 4:59 am    Post subject:

Hi Augustus,

The lender requires the appraiser to give his best quality of work and to determine the appropriate value of the property. So it is quite likely if he wants the borrower to use his appraiser as he will be sure of his appraiser's quality of work.
 
image
Guest









0.10 Dollars($)

PostPosted: Fri Aug 17, 2007 4:29 am    Post subject:

Hi Agustus,

When you want to remove your PMI, the lender may require you to do an appraisal and that is not done automatically. You have to pay a fee for that. Nowadays, many lenders appoint appraisers through nationwide appraisal management at pretty negotiated fees. And 400$ is quite an affordable amount. So you must not face any problem to pay the required fee. But if you are not satisfied with his appraisal of your property, you can use an appraiser of your choice and get another appraisal done
 
image
Icon Mini Profile lisascherzer



Joined: 04 Jan 2008

Posts: 599



69.56 Dollars($)

PostPosted: Sat Jan 12, 2008 1:29 am    Post subject:

It might be easier just to refinance since the 30 year fixed rate is around 5.5% with no points. You could look at a no cost loan also that would be below your current rate and save both on the pmi insurance and your interest rate.
_________________
Lisa Scherzer
Allpointe Mortgage
Expert Mortgage Broker
440-521-7060
Get Mortgage Quotes
Compare 100+ Mortgage Lenders Here
Find Real Estate Agents
 
image
Icon Mini Profile bthahir



Joined: 05 Sep 2007

Posts: 36



13.18 Dollars($)

PostPosted: Tue Jan 29, 2008 7:49 am    Post subject: Appraisal

Yes they can do it, its done to ensure that your house value is same or higher than before. For eg if your house value has decreased by 10% obviously the lender is on risk. So the lenders do it to be on safer side
 
image
Icon Mini Profile enriko



Joined: 05 Mar 2008

Posts: 61



16.64 Dollars($)

PostPosted: Tue May 20, 2008 2:25 am    Post subject:

Hi

They do have a right to ask that.
Because over the years the value of property might have changed. Maybe you have fixed something or reconditioned it.

take care

_________________
http://www.ezylet.co.uk/- Life of landlords and tenants made ezy!
 
image
Quick Reply
Your Name
Subject
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Helpful References
Mortgage Guide
Mortgage Terminology
Industry News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool
Mortgage Planner
Simple Budgeting Tool


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit Live Help

Explore the lender near you

Google Map Image

MF Talk

 
About Us  | Contact Us  | Privacy Policy  | Testimonials  | Website Tools  | RSS Feeds  | Site Map 
We have chosen to apply the Creative Commons Attribution License to all works we publish.
This work is licensed under cc by 2.0