- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Question about PMI
Posted on 1/20/20 at 9:35 pm to wickowick
Posted on 1/20/20 at 9:35 pm to wickowick
quote:
Does the value of the land and the home equal to your outlay of $350k?
The land was purchased and paid off at $50,000. The home is being built on that land at a total value of $300,000.
When everything is finished. Assessed value of total property is $350,000.
Bank is only loaning $300,000.
3
Posted on 1/20/20 at 9:48 pm to SidewalkDawg
If you are borrowing 300k you need the total house land etc to appraise for 375 to reach 20% equity to avoid PMI
Posted on 1/21/20 at 11:06 am to SidewalkDawg
quote:
The land was purchased and paid off at $50,000. The home is being built on that land at a total value of $300,000.
The home is being built at a COST of $300K, not value.
quote:
When everything is finished. Assessed value of total property is $350,000.
The assessed value (tax) is irrelevant. All that maters is the appraisal in regards to your LTV being at 80/20 to avoid paying PMI.
Once the house is completed or very near completed your lender will order an appraisal to determine its value. What you paid for the lot and/or to have the home built really doesn’t come into play. It’s all about the final appraised value as that is what the bank will be securing (via a mortgage) to loan you money.
This post was edited on 1/21/20 at 11:07 am
Posted on 1/21/20 at 12:55 pm to SidewalkDawg
quote:
When everything is finished. Assessed value of total property is $350,000.
quote:
Bank is only loaning $300,000.
Assuming the whole property (house and land) is appraised to be $350,000, then you need to have 20% of the appraised amount in equity in order to avoid PMI.
The "theory" behind the requirement of PMI is the lender will not get full value of a repossessed house in auction. likely they will get 80% of the value. and in your case the value of the property is $350,000
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News