Anyone have a home appraisal done?

[PennyPincher]

I'm desperate to have my mortgage insurance removed from what I pay every month. Since I didn't put down 20%, nor have I accumulated the equivalent, I've been told that I should have an appraisal done. If it warrants that my loan balance is less than 65% of the home's value, then I can have it removed.

Has anyone here had an appraisal like this done? House prices have skyrocketed here, so I'm confident that I'm close to the 65%. I may wait a few months to be sure, but need to plan the steps.

What should an appraisal cost? (I want to save the $80/month, but not for a few thousand!)

THANK YOU!

[JLP]

An appraisal shouldn't cost more than $300 - $400. I live in Texas, I'm not sure what it should cost where you live.

JLP

[Stacyjh]

I am an appraiser in Nebraska and I charge $350. While this sounds like alot, appraisals take much more time than most people realize. It really depends where you live though and how many appraisers are in your area and how bad they need business. Make sure you get a licensed appraiser otherwise your banker will probably not accept it. If you want to get an idea of what your home will appraise for first, then you can ask a real estate agent, and they should be able to tell you fairly close, then you can decide if you want to spend the money. Most real estate agents do not charge for this in the hopes of if you decide to sell at some time, you will use them as your agent.

[terry1156]

Yes, you want to make sure that the house appraises above the amount you need to get the PMI taken off. I had a friend that had an appraisal done for $500 and he didn't make it so he had to pay the $500 in addition to continuing to pat the PMI.

[PennyPincher]

Thank you! I can plan accordingly now. Fortunately, the development is only a year and a half old, so sales are still active. Although the units sold out, MANY people have flipped them to take advantage of the equity. The appreciation has been incredible, so for that I am grateful. With several comparable sales and units within the same development, it should be easy for an appraiser. That should get me a discount, right? If only...

[PrincessPerky]

So dumb question here, what is mortgage insurance?

[PennyPincher]

Basically, another way for the mortgage company to make money.

Okay, really... It is a monthly fee that is paid and wrapped into the mortgage that insures the lender against loss caused by a borrower's default on a mortgage. If a buyer is unable to put 20% down on a home, they are usually required to pay mortgage insurance, which is somewhere in the area of $40-45 per 100K per month. (So a $200,000 home might have monthly MI of $80 or $90.)

It's not nice. And showing a record of good payment doesn't matter. It can't be cancelled until the loan represents no more than a certain percentage of the home's value. If it is a primary home, it can be cancelled when the loan is down to less than 80% of the original loan, or home's value (hence the updated appraisal). For second homes/rentals, that percentage varies.

I'm certainly not an expert, but I've learned by paying, unfortunately...

[PrincessPerky]

Umm guess that means I am paying one, wonder if I can get rid of it? does the tax apraisal they do count ? We just had one sent to us last year.

[JLP]

The part that is frustrating about PMI (Private Mortgage Insurance) is the fact that you are required to get another appraisal done before the mortgage company will drop it. Mortgage companies know that most people will not shell out the money for the appraisal, but will continue paying PMI. Also, I bet if you polled homeowners, most of them probably don't even know they are paying PMI.

JLP

http://AllThingsFinancial.blogspot.com

[PrincessPerky]

Aparently my Hubby knew about this PMI stuff, he says we have 11,000 dollars to go before we can cancel it, that is a loooooooong way off!

[amomof4]

You could get a real estate agent apraisal. That would give u an idea if the house is close to the amount u need it to apraise for. Talk to the agent who sold u the house.

[terry1156]

What's really terrible is that once you reach the 20% of the original loan (even without an appraisal) the mortgage company won't say a word to you about it. Unless you are aware of it, and cancel you just keep on paying. While most people probably see it when they sign the laon, how many will remember several years later when they reach the 20% mark?

[JLP]

Of course the lender won't tell you this. They like getting the extra $40 - $100 per month, month in and month out. That's why it is important for people to understand this kind of stuff. That's why this board is so important!

JLP

[PennyPincher]

Just a note ~ many companies are now REQUIRED to tell you/automatically cancel the PMI when a certain percentage of the loan has been paid off.

The Homeowners Protection Act of 1998 - which became effective in 1999 - establishes rules for automatic termination and borrower cancellation of PMI on home mortgages. These protections apply to certain home mortgages signed on or after July 29, 1999 for the purchase, initial construction, or refinance of a single-family home. These protections do not apply to government-insured FHA or VA loans or to loans with lender-paid PMI.

For home mortgages signed on or after July 29, 1999, your PMI must - with certain exceptions - be terminated automatically when you reach 22 percent equity in your home based on the original property value, if your mortgage payments are current. Your PMI also can be canceled, when you request - with certain exceptions - when you reach 20 percent equity in your home based on the original property value, if your mortgage payments are current.

SO...of course they won't tell you when you've paid for 20%...they let it go until 22%. At least fewer people are being taken advantage of. But still ~ I'm trying to be proactive and get it cancelled asap.

[Tree0164]

I did pay to have my home appraised 2 yrs ago to have the PMI taken off. It was $300 but well worth it. I was paying $44 a month and would have been paying for atleast 3 to 4 yrs more.

Well worth it in my opinion.

[tag61usa]

Hi,

A little off-topic but, I am interested in training to become an residential real estate appraiser. I would like to change professions.

Can you tell me a little about your certification requirements? Did you go to a school or through a company to become certified?

Any information would be appreciated. Thanks.