Use Appraised Market Value to Cancel PMI?

[verratti4]

I posted another topic last week entiled TAXES help please! where I stated that the house i just purchased for 93000 10 months ago is now at 114840 thanks to appraisal district. i posted asking weather or not this could be protested etc. But it got me thinking i pay about $74 on private mortgage insurance if my market value is now 114840 i believe i now qualify to cancel pmi, because now i guess my loan ration is different. Has anyone ever canceled their pmi when their market valued increased? Would another appraisal company value the same way the district does? the reason my properety value went up is because my lot value went from 3500 to 20,000.

And so I had another question, if I protest now and possibly get my appraised value down to closer to what i paid, then in a few months pay to get the home reappraised, would the independant appraiser look at my property records as far has my tax values etc or will he just look at the other houses in my area that now have a market value like or over the 114840. since the values just went up there hasnt been any house sell for that in my area (subdivision).

I would love to be able to cancel that pmi, and save on my property taxes, and or do both at the same time. Is any of this possible ? have you done this ? , know someone who has done this ? or have

any suggestions weather this is possible or im just wishful thinking. thanks Emily

[travelguy_73]

I don't have an answer on your appraisal question, I'm sure someone with more knowledge of that will reply. However, before you get too excited about cancelling PMI, read your mortgage document's fine print. Many mortgage companies have "gotten wise" to using appraisals to cancel PMI and have clauses stating you must pay PMI for xx years before an appraisal change can be used to eliminate it.

Good luck!

[flipper]

For what it's worth. HCAD's "market value" or "appraised value" doesn't necessarily reflect a properties true market value or "real" appraised value.

flipper

[spiderman]

I posted another topic last week entiled TAXES help please! where I stated that the house i just purchased for 93000 10 months ago is now at 114840 thanks to appraisal district. i posted asking weather or not this could be protested etc. But it got me thinking i pay about $74 on private mortgage insurance if my market value is now 114840 i believe i now qualify to cancel pmi, because now i guess my loan ration is different. Has anyone ever canceled their pmi when their market valued increased? Would another appraisal company value the same way the district does? the reason my properety value went up is because my lot value went from 3500 to 20,000.

And so I had another question, if I protest now and possibly get my appraised value down to closer to what i paid, then in a few months pay to get the home reappraised, would the independant appraiser look at my property records as far has my tax values etc or will he just look at the other houses in my area that now have a market value like or over the 114840. since the values just went up there hasnt been any house sell for that in my area (subdivision).

I would love to be able to cancel that pmi, and save on my property taxes, and or do both at the same time. Is any of this possible ? have you done this ? , know someone who has done this ? or have

any suggestions weather this is possible or im just wishful thinking. thanks Emily

I did this very thing on 2 houses I own in Montrose several years ago (seems like about 2000 or so), in one case I even got to pick the appraiser, in the second case the lender picked the appraiser. Houses typically (but not always) appraise for a couple of thousand dollars more than the HCAD value, but not always, so you might be just on the cusp and your home may not appraise high enough to make the 80% threshhold.

I belong to a couple of real estate investment groups, and have heard some anecdotal stories of cases where homes did not appraise for what the investor thought they would after repairs, due to the downward impact of foreclosure sales making appraisers more conservative in their appraisals.

As stated in the prior posts, the first step is to see what your lender's requirements are, there may be a seasoning requirement before you can get rid of PMI. And there may be much more scrutiny now as a result of all the real estate shenanigans that have occurred in the past few years.

Best of luck, hope you can get it dropped