Can my apprasial for a Home Equity loan also be used to get PMI off of my mortage?
I am starting my own business and need start up cash. I bought my home last year for 209000, but it was way undervalued. Several smaller homes in my neighoorhood have sold for about 230000. The principal remaining on my loan is 205000. If I take out a home equity loan for 40K and can get my house appraised for 250K while reducing my principal to 200K I can eliminate PMI and roll that money (and then some) into the payment for my home equity loan. Will my mortgage company accept the home equity loans company’s appraisal (it should be done by an outside company). Also, the reason I layed out so much information is because I am also fishing for any advice I can get on this situation. Thanks for any input at all!
Not to contradict one of the other answers here, but PMI is applied when the first mortgage is over 80% loan to value (not 70%). In simple terms, if your home is worth $100,000 and your first mortgage is $80,000 or less, you should have no PMI.
To have the PMI removed, there are some options. First, you should call the mortgage company and ask them whether or not they require a full appraisal (some companies only require a BPI – Broker’s Price Opinion, which should cost less than $100). If they do, ask them for a list of the approved appraisers in your area. You should then be able to go to your local lender for the HELOC (Home Equity Line Of Credit) and ask that lender to use one of the appraisers on the list.
Another option would be to ask your lender to have the appraisal done (then they can remove your PMI), and then go to your lender with that appraisal. If the appraiser who does the job is on their list, it should be easily usable.
Third option, but probably most expensive, would be to go to your lender (with your current loan information) and ask what benefits there are for you refinance. This could work to your benefit if you either have a higher interest rate (your rate will go down on the first mortgage with a lower loan to value ration) or if you have an ARM (Adjustable Rate Mortgage) that will be adjusting soon.
Most importantly, don’t forget that the HELOC or second mortgage you get will have a higher interest rate. In most cases, though, it’s a small bit higher for total payments than your first mortgage plus your PMI. You make up for this with the interest deductions you can take on the second at the end of the year. Make sure you ask your accountant or CPA first to get all of the details on this.
Best of luck to you – you seem to have your ducks in a row, and your plan should work well for you.
Sean
Private Mortgage Insurance (PMI)
Pros and cons of refinance appraisals
Many homeowners want to refinance their home loans in order to take advantage of lower mortgage rates. Before a loan is approved, however, the borrower likely will be asked to order a professional appraisal to assess the value of the property.
The above mentioned are the basic requirements in order to qualify for a home loan. Secondly, I was interested to know how big a home loan I could get considering Mortgage Appraisal Pmi. As soon as I knew how much, I could start searching for a house.
Mortgage Appraisal Pmi
Mortgage Broker vs Bank of America, which is elected?
My agent wants to charge the following for a loan amount of about $ 242 k. and the market rate current best of about 6% fixed 30 years said. appraisal fee $ 300 processing fee subscription fee of $ 350 $ 700 Interlock $ 1,100 flashes cost $ 2450 "I can afford to trade 1.5% which is $ 3663 monthly payment would be $ 1805. The agent says there are PMI as putting 5% down. Now, Bank of America wants to give me loan them declared income of $ 250K, 30 year fixed, 10% andwhich is $ 225K loan rate of 5,500%, but the point of 3.552% discount is $ 7992 I have to pay the fee, however, PMI to put 10% down not only closing or loan rates. For comparison, trying to find a better broker BOA or THR? especially where I'm losing more money? BOA does not have to PMI means I'm saving over $ 100 monthly for several years right? I think despite point discount fee $ 7992, I still think BOA is much better than the interest rate is low and not any other charge and no PMI.
Have them work on their loan to the extent of DOC, it is likely that Bank of America withdrew the bid at the last minute and when I come back his agent with his tail between his legs that he can hit with an additional "fee" in spite of yourself. Better safe then sorry!