Steveo
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You would have to have it appraised. If the new appraised value makes the whole property worth more than $100,000, then you will be able to abandon the PMI's. |
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fifibonjour
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No, they are very reluctant to drop PMI. It will probably pay to refinance. |
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Open Book Advisors™
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Sharon
You need to call an appraiser in your area first. Living space and garage are different types of square footage.
They can give you a more accurate account of what you should add on to get that 20 % based on your area comps.
Good Luck
Open Book Advisors™ |
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matsonb
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The decision on when to cancel the private insurance coverage does not depend solely on the degree of your equity in the home. The final say on terminating a private mortgage-insurance policy is reserved jointly for the lender and any investor who may have purchased an interest in the mortgage. However, in most cases, the lender will allow cancellation of mortgage insurance when the loan is paid down to 78% of the original property value. Some lenders may require that you pay PMI for one or two years before you may apply to remove it.
To cancel the PMI on your loan, contact your lender. In most cases, an appraisal will be required to determine the value of your property. You will probably also be required to pay for the cost of this appraisal. Another way of cancelling the PMI on your loan is to refinance and to get a new loan without PMI. http://www.choicerealestate.net/ |
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Terry S
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I don't know if adding a 2 car garage will get you the additional 20% increase in value you need to drop the PMI.
You'll have to contact your realtor and tell them what you want to do.
Have them run the comps for about the same square footage home WITH a 2 car garage.
Call the bank and ask them what's required to get the PMI dropped. It may be the ORIGINAL appraisal when you bought the home.
If it is you could build a 4 car garage and it won't help you.
Hope this helps.
Terry S.
http://www.Welcome2Arizona.com |
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siraj1466
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take permission from the county first then do ... otherwise you will fined..becairfull |
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Expert Realtor
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No it won't. People think if they buy a house today, and in a few months to a couple of years if their house value goes up to 80% LTV, then they can just drop the PMI and all they have to do is get an appraisal...I can tell you NOW that is animal that doesn't exist.
Mortgage company's are smart. They go by the ORIGINAL appraised value from when you purchased the home, to calculate the 80% LTV...yeah, now you know why people refinance to get rid of PMI.
There are too many loan officers/mortgage brokers that are CONSTANTLY telling the public the "myth"...and they obviously don't know how PMI works if they are.
....if only it were that easy. |
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greybeads
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PMI on FHA, MFA and VA loans is built in to last for 7 years, then it automatically discontinues.
This automatic feature was build in to stop, because some banks let it run the entire length of the loan and made they made money on something that was not longer needed.
There is no way to get ride of PMI on FHA, MFA or VA loans unless you refinance. Refinancing costs apx 1500 per 100,000 of loan. |
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ods
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PMI will only be taken out if your loan balance on your first loan is 80% or below of the value of your property. Lenders will not do this automatically, you would have to request for it and they will determine if the value did go up and it is within the 80% limit. |
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Keep On Trucking
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You would have to get the bank to do another appraisal and it would have to say that your house is worth more than it used to be and your loan is only 80% of the house's value. Then the bank legally has to drop PMI. But it's doubtful adding a garage would go that far. |
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Heather C
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it might. That all depends on the lender. The bank will probably want a new appraisal done. As long as house prices have not dropped in your area, you may be able to convince your lender to drop the PMI. |
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endgame1915
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my answer is 95% no but contact a lawyer. |
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