PMI based upon? (lender, buy, appraised, 10%) - Mortgages - Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

pghquest · 01-26-2008, 10:42 PM

Ok, if I buy a home appraised for $220K, and pay $120K, and I put 10% down, do I need to pay PMI?

renriq02 · 01-27-2008, 08:38 AM

Yes. A lender chooses the purchase price as the value of the home.
It's ALWAYS the lesser of these two Purchase Price/Appraisal.

One option is to pay the PMI for 6-12months, and send a new appraisal to your lender. They will normally help you in 12months....but it will be a something hard to get.

Quote:

Originally Posted by pghquest

Ok, if I buy a home appraised for $220K, and pay $120K, and I put 10% down, do I need to pay PMI?

pghquest · 01-27-2008, 08:41 AM

Quote:

Originally Posted by renriq02

Yes. A lender chooses the purchase price as the value of the home.
It's ALWAYS the lesser of these two Purchase Price/Appraisal.

One option is to pay the PMI for 6-12months, and send a new appraisal to your lender. They will normally help you in 12months....but it will be a something hard to get.

Thanks, thats an idea. I can put down the 20%, but just dont want to.

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