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Started By
Message
How to make sure home appraises? PMI question.
Posted on 5/11/16 at 2:00 pm
Posted on 5/11/16 at 2:00 pm
Bought my first home 3 years ago for $185,000 ($120/sqft) and am actively paying extra principal payments to reach 78% LTV and get rid of PMI. I am about $12,000 away from this threshold. I am looking into getting a new appraisal done to lower this figure and pay PMI off quicker. A few things to note:
1) 3BR/2BA cookie cutter neighborhood
2) 5 homes have sold in the last 90 days all for $193-$195k and all between $135/sqft-$136/sqft with 2 more pending
3) My home is about 100sqft larger than those which have sold recently, and would be worth $208k IF valued at $135/sqft
4) All of the above stats are from Zillow, and the current Zestimate value of my home is $195,800 ($127/sqft).
5) I just replaced my old 3 ton AC system with a 4 ton system.
In order to get rid of PMI via a new appraisal, I will actually have to reach 75% LTV, so the last thing I want to do is pay $600 for an appraisal and have it come in at $195k and still owe $11,000. However, if it came in at the going price per square foot rate of $208k, PMI would be immediately eliminated.
Any advice is appreciated. I'd love to hear tips on getting the best appraisal and just what others would do in my situation.
1) 3BR/2BA cookie cutter neighborhood
2) 5 homes have sold in the last 90 days all for $193-$195k and all between $135/sqft-$136/sqft with 2 more pending
3) My home is about 100sqft larger than those which have sold recently, and would be worth $208k IF valued at $135/sqft
4) All of the above stats are from Zillow, and the current Zestimate value of my home is $195,800 ($127/sqft).
5) I just replaced my old 3 ton AC system with a 4 ton system.
In order to get rid of PMI via a new appraisal, I will actually have to reach 75% LTV, so the last thing I want to do is pay $600 for an appraisal and have it come in at $195k and still owe $11,000. However, if it came in at the going price per square foot rate of $208k, PMI would be immediately eliminated.
Any advice is appreciated. I'd love to hear tips on getting the best appraisal and just what others would do in my situation.
4
Posted on 5/11/16 at 2:06 pm to PhiTiger1764
Verify with your lending company that they would do away with PMI under those circumstances.. I don't believe they have to if they do not want to.
Posted on 5/11/16 at 2:09 pm to Shepherd
quote:
Verify with your lending company that they would do away with PMI under those circumstances.. I don't believe they have to if they do not want to.
I have. And they do, by law.
I can't just go grab any appraiser, though. I have to use a Wells Fargo approved appraiser.
This post was edited on 5/11/16 at 2:11 pm
Posted on 5/11/16 at 2:36 pm to PhiTiger1764
quote:
can't just go grab any appraiser, though. I have to use a Wells Fargo approved appraiser.
It's a crap shoot. When we bought our house last August the appraisal came in really low which screwed the seller. The appraiser was approved by my lender . The guy was from Livingston Parish apprasing a home in Zachary. I had it reappraised 3 months ago and it came in 35k higher than the original.
Posted on 5/11/16 at 2:59 pm to PhiTiger1764
quote:
PhiTiger1764
quote:
the last thing I want to do is pay $600 for an appraisal
People who get Jumbo Loans/Alt A Financing for homes that are upper 6 figures (<$417K or the limit of most Conventional Financing Options that are backed through Freddie and Fannie) might pay $600 for an appraisal.
But if your home is less than $200K and you're paying $600 for an appraisal, you're being raped.
Posted on 5/11/16 at 3:01 pm to PhiTiger1764
quote:
so the last thing I want to do is pay $600 for an appraisal
seems high to me. Most I see are $400-$450
quote:
However, if it came in at the going price per square foot rate of $208
this wont be a factor in the appraisal. Don't count on this. This number is calculated by the software, after the report is done, and is an afterthought. It is not used to determine any comps, or value. Builders are the main ones that use this number, and it is only to determine their profit. IF the houses sold in your neighborhood are comps, and yours is slightly bigger there could be a small positive adjustment to your house, but other things they have could negate that.
Posted on 5/11/16 at 3:09 pm to GFunk
quote:
But if your home is less than $200K and you're paying $600 for an appraisal, you're being raped.
The Wells Fargo approved appraiser that I am required to use to go through this process of eliminating PMI will cost $550. This isn't negotiable.
Posted on 5/11/16 at 3:28 pm to Helmethead
quote:
IF the houses sold in your neighborhood are comps
Do you know how they go about determining comps? I really don't understand why they would use anything other than my neighborhood where all the houses are essentially the same.. This seems like it will be more of a pain in the arse than it's worth...
Posted on 5/11/16 at 3:29 pm to PhiTiger1764
quote:
PhiTiger1764
quote:
The Wells Fargo approved appraiser that I am required to use to go through this process of eliminating PMI will cost $550. This isn't negotiable.
1.) Open a New Tab on your Browser
2.) Type in "Appraiser in (Insert your location here)"
3.) Call them
4.) Ask them how much they charge for a typical appraisal
5.) Call Wells Fargo & Biatch
It's just a shakedown brah.
Posted on 5/11/16 at 4:40 pm to PhiTiger1764
quote:
Do you know how they go about determining comps
typically proximity,and size, date of sale are all combined to find a happy medium. But it really is more complicated than a simple answer like that. If in a gated community, typically USPAP standards require 1 comp to be outside of that community, to guarantee that a specific pocket in an area doesn't exist.
Posted on 5/14/16 at 2:52 pm to PhiTiger1764
I'm in the same boat as you, right on the edge, but don't want to waste the money on a appraisal if it comes in 2k short of what I need. Appraisals cost 450 through Wells Fargo 420 I believe. I would think I could get a higher appraisal out of the non wells person but have a feeling I would have to still jump through the hoops to have pmi removed I hate Wells Fargo.
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