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A homes assest value and PMI
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Dani00518
Gorgeous
Member since 5/05 2730 total posts
Name:
Danielle
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A homes assest value and PMI
Ok I have a dumb question....what if your not putting 20% down on a house but the house is assest for higher than you pay for it and the difference between the price you payed and the assest value plus your down payment exceeds the 20%...would you still pay PMI?
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Posted 8/10/07 6:20 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MrsT
Enjoying wedded bliss.....
Member since 4/06 1323 total posts
Name:
Katrina
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Re: A homes assest value and PMI
Posted by Dani00518
Ok I have a dumb question....what if your not putting 20% down on a house but the house is assest for higher than you pay for it and the difference between the price you payed and the assest value plus your down payment exceeds the 20%...would you still pay PMI?
If I understand your question, the answer is that PMI is based on appraised value. PMI is not necessary (or can be cancelled) if the equity in your home is 20% of the home’s appraised value; i.e., the bank's appraisal comes in at $100K but you bought for $90K with $10K down = 80K mortgage on a $100K property. You would pay no PMI since you have 20% equity.
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| Posted 8/10/07 7:37 PM |
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counselor74
LIF Adolescent
Member since 5/07 806 total posts
Name:
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Re: A homes assest value and PMI
If you can avoid PMI you will save a lot of $$.
Message edited 8/10/2007 10:30:55 PM.
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| Posted 8/10/07 10:28 PM |
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