How long to get 20% equity in a home? (appraisal, foreclosure, sales)

[smartygurl]

I'd like to know if anyone can tell me about how long it would normally take me to gain 20% equity in my home. I bought it for 169,000 and put 10% down. So roughly, what would be an estimate of how long it would take me to pay off 20% of this loan. I am thinking of using the $7,500 First time home buyers tax program to pay off part of my remaining 10% that I need pay before I have the 20%. Does that sound like a good idea to anyone? Thanks.

[Mike Peterson]

There would really be no way to tell at this point with house values coming down as they have.
Are you trying to do this to get rid of your HMI payment?

[chet everett]

Use an amortization calculator:

Amortization Schedule Calculator -- Bankrate.com

[smartygurl]

I'd like to get rid of the PMI as soon as possibly can.

[smartygurl]

Would I have to refinance my loan in a couple of years when property values increase again in order to get rid of the PMI?

[DanBev]

It will be a long,long time before property values increase,a home is purchased for comfort and shelter not an atm machine,this type thinking has lead the country to the mess we are in.The $7500 is a loan,not free money.

[chet everett]

If you increase your equity by accelerating your payments you will get the PMI removed faster than by sticking with the amortization the lender has you on.

If property is appreciating in your area, and you don't have a FHA loan, you could ask for an appraisal that shows your equity is now large enough to have the PMI removed.

[bentlebee]

Wow...you are an optimist and probable forgetting that most people are upside down or at the level they bought it for and if they are for decades in their homes their home values might still be higher than what they paid for it.

It all depends of how many people in your neighborhood are in foreclosure and/or bankowned and what the values are and what you paid, compaired to them...than you have to see what the market will do, but you sound to me like a person who wants to take equity out a.s.a.p. and you can smell the green bills coming in....I hope I'm wrong....

[Braunwyn]

I'm not understanding some of you here. If s/he owes 200k on a house, pays 40k off the principle, wouldn't she lose the pmi? Why does home value matter? I'm confused on this.

[tamcim72]

My old home I had an reappraisal done (around $300) after a few years. They took into consideration size, condition and neighborhood home SALES for the last few months. That was way before housing market disaster. So even if you paid off 20% it will depend what the CURRENT value is in relation the the loan amount. The PMI rate is based on the loan to value ratio, not loan to sales price ratio.