mortgage loan ?

[Anonymous]

Can I use the home appraisal to contest the PMI charges? My loan is a conventional with 10% down at   4.89%  zero points and  i'm locked in.

[Anonymous]

Is that a good rate today? My credit scores are 789 and 790. And if the rate lowers before closing can I unlock and change?

[Anonymous]

While some loans do allow for a float down, rates are creaping higher and anything still under 5 is probably not a bad rate.

What do you mean by contest the PMI.  LTV is based on the initial purchase price of the home so if the house appraises for higher it does not mitigate PMI.  Once you feel you have paid the loan down to 80% of the original purchase price, then you can attempt to get an appriasal to justify cutting PMI if the bank does not do it automatically.

[Anonymous]

Thanks for the info. My purchase price is  $210,000 my loan is $189,000 if the appraiser comes in at $230,000 can I use that as my baseline to try to achieve %20?

This forum is very useful thanks for the replies. 

[Anonymous]

sorry I read your post again and i get it. Initial loan price. 

[ShanetheMortgageMan]

NY is the only state where on a purchase PMI is determined by the appraised value (vs. lower of the appraised value or purchase price). 

[Anonymous]

What if I did some home improvements that raise the value of the home? I have it appraised again and the value increases dramatically %30?

[Anonymous]

I live in michigan

[ShanetheMortgageMan]

Most lenders will require you pay PMI for a few years before getting a new appraisal with a value showing you have equity would be able to remove it.  Each lender is different though.  The only time they are required to remove PMI is once your loan balances gets to 78% of the home's value at the time the mortgage was made.  If the home appraises for that much more, then after 6 months, you can refinance using the current appraised value and then the new mortgage wouldn't need PMI.

[Anonymous]

Thanks Shane,

My goal will be to just pound the principal balance down then.