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Message
Getting rid of mortgage insurance- Updated with answer
Posted on 3/20/18 at 10:57 am
Posted on 3/20/18 at 10:57 am
I bought my house in February of 2015. Since then I have been paying roughly $140 a month to PMI which is like flushing it down the toilet. The only way to get rid of it is owning 20% of the home. Here are the numbers:
In 2015 it appraised for $214,000
I currently owe $185,000
With area and home improvements, I feel an updated appraisal would be close to $225,000. Meaning $180,000 would be my 20% mark to get rid of it.
With that being said, Is it worth getting an updated appraisal?
In 2015 it appraised for $214,000
I currently owe $185,000
With area and home improvements, I feel an updated appraisal would be close to $225,000. Meaning $180,000 would be my 20% mark to get rid of it.
With that being said, Is it worth getting an updated appraisal?
This post was edited on 3/21/18 at 6:56 am
7
Posted on 3/20/18 at 11:07 am to tiger10lsu
quote:
With that being said, Is it worth getting an updated appraisal?
Only if you feel it appreciated by that much. If not it'll just be pissing in the wind like PMI. Call the appraiser and just shoot the shite with him before you commit to it. You'll get at least an idea on it before you cut the check. Ask him if he's appraised any other prop in the area simlar bed/bath/sq ft cause that's all they use is comps no matter how much nicer on the interior your house may or may not be.
Posted on 3/20/18 at 11:08 am to tiger10lsu
I was in a similar position as you a few years ago and decided against the new appraisal. I didn’t want to risk spending $500-$600 and it not appraise.
Instead, what I did was spend down all the cash I had on extra principal payments to void the PMI, and took on interest free credit card debt to pay bills. I figured I could save up enough money to pay off the balance by the end of the interest free period. It was risky and I would have been in a bind if I had an unexpected expense during that time, but it worked out for me. I wouldn’t necessarily recommend this strategy, but I hated PMI so much that it was worth the risk.
Instead, what I did was spend down all the cash I had on extra principal payments to void the PMI, and took on interest free credit card debt to pay bills. I figured I could save up enough money to pay off the balance by the end of the interest free period. It was risky and I would have been in a bind if I had an unexpected expense during that time, but it worked out for me. I wouldn’t necessarily recommend this strategy, but I hated PMI so much that it was worth the risk.
Posted on 3/20/18 at 11:29 am to tiger10lsu
My PMI is only $44 a month. $140 would drive me insane.
Posted on 3/20/18 at 12:30 pm to tiger10lsu
22% is your mark most likely, not 20%. they are different numbers for when you first get a mortgage vs dropping it later.
Posted on 3/20/18 at 12:38 pm to tiger10lsu
When did you buy the home? Did you use an FHA loan?
Posted on 3/20/18 at 12:43 pm to tiger10lsu
quote:
With that being said, Is it worth getting an updated appraisal?
Probably. But is it worth it to do home improvements? Perhaps not. I wouldn't go sinking a bunch of money into the house unless they will really help the value. If these are improvements you want done regardless, then by all means go forward with them
Posted on 3/20/18 at 3:55 pm to tiger10lsu
Shouldn't require a full appraisal. Likely a drive-by or BPO. Shouldn't cost 500
This post was edited on 3/20/18 at 3:56 pm
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