Im in the middle of an appraisal and I need to rise the price of my home about 10,000 dollars in order for them to drop the PMI and the extra fees that come along with not owning 20% of the property. I already finished off a 12 by 12 room above the garage and we added new Appliances in the kitchen but for the most part that is it. Does anyone think that will be enough?
August 19th, 2009 at 12:33 pm
The room may or may not bring up the appraisal by 10K. IF proper permits were not pulled then you are in for a lot of trouble and can even be made to remove the addition.
You are mistaken about what it takes to get PMI stopped, here read this
How Do You Cancel or Terminate PMI?
Cancellation
Under HPA, you have the right to request cancellation of PMI when you pay down your mortgage to the point that it equals 80 percent of the original purchase price or appraised value of your home at the time the loan was obtained, whichever is less. You also need a good payment history, meaning that you have not been 30 days late with your mortgage payment within a year of your request, or 60 days late within two years. Your lender may require evidence that the value of the property has not declined below its original value and that the property does not have a second mortgage, such as a home equity loan.
August 19th, 2009 at 4:55 pm
If you are in the middle of the appraisal and he is coming to inspect your home tomorrow, these are the only things you can do to give your property the best chance:
1) Clean everything
2) Repair anything that is broken or missing
3) Remove the junk and clutter, inside and out
4) Make the property look like it is being taken care of.
Your property is what it is. Don’t give the appraiser another reason to knock your value.
August 19th, 2009 at 11:01 pm
You can make improvements to the property, but the appraisal also has to do with the market. If other homes in your area are the same age and size but are valued at a set amount, you can rest assured yours will probably follow suit. If you know a realtor, you might ask him/her for ideas. Sometimes you spend more money in upgrades than you get in return or value. Be careful.
August 20th, 2009 at 5:35 am
Hope you had the permits and work done to code for that extra room you built. Otherwise, you may have trouble.