PMI based on sale price of house or bank appraisal?

Quick question – we’re currently in contract and the bank just finished the appraisal.  The house was appraised at 8.30% higher than the sale price.  What does this mean for our PMI?

Side note: this is an FHA mortgage

guikazoid

in Mortgage 13 years and 8 months ago

5

Please log in, in order to post replies!

5 replies

Newest Oldest

michaelmilesryan | 13 years and 8 months ago

string(1) "1"
object(WP_User)#4939 (8) {
  ["data"]=>
  object(stdClass)#4928 (12) {
    ["ID"]=>
    string(6) "179606"
    ["user_login"]=>
    string(16) "michaelmilesryan"
    ["user_pass"]=>
    string(34) "$P$B/7ahunx7EfPRHzXWYN6P4ZoDkFFsD0"
    ["user_nicename"]=>
    string(16) "michaelmilesryan"
    ["user_email"]=>
    string(26) "michaelmilesryan@gmail.com"
    ["user_url"]=>
    string(58) "http://bstoner.wpengine.com/forums/users/michaelmilesryan/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:26:53"
    ["user_activation_key"]=>
    string(20) "tv4TElEaCP9NoLTgSAxo"
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(16) "michaelmilesryan"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(179606)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

oh see there she has a post above me i found her on here

michaelmilesryan | 13 years and 8 months ago

string(1) "1"
object(WP_User)#4938 (8) {
  ["data"]=>
  object(stdClass)#4937 (12) {
    ["ID"]=>
    string(6) "179606"
    ["user_login"]=>
    string(16) "michaelmilesryan"
    ["user_pass"]=>
    string(34) "$P$B/7ahunx7EfPRHzXWYN6P4ZoDkFFsD0"
    ["user_nicename"]=>
    string(16) "michaelmilesryan"
    ["user_email"]=>
    string(26) "michaelmilesryan@gmail.com"
    ["user_url"]=>
    string(58) "http://bstoner.wpengine.com/forums/users/michaelmilesryan/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:26:53"
    ["user_activation_key"]=>
    string(20) "tv4TElEaCP9NoLTgSAxo"
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(16) "michaelmilesryan"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(179606)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

 MY mortgage broker can explain all the options for you Vanessa Thatcher  631-672-4113
Vanessa rocks if she says she can do something believe it!!!! After
THREE mortgage brokers promised all sorts of things nd wasted 16
months of my life on a whim I followed up on a post I saw on this site
and tracked her down thinking id just sound her out on a few things
that didn’t seem right. Because God know the last thing I ever
intended to do was go through another application process {I actually
had the commitment at that point but terms were suddenly changing}  By
about 30 minutes into that call I was forwarding her a tenth of the
documents the other broker wrung out of me and she had submitted my
application with an understanding that I could hold on to my
commitment until she delivered what she promised.
What did she promise? That that was all the documents I would have to
submit ,that I would have an answer in a week,that I would get a rate
half a point lower than I was being offered and instead of paying 4
points I was going to be paid two points towards closing costs, that I
could put less money down,That the loan would be placed and accepted
by a nationally recognized lender rather than the sub prime outfits I
had been led to believe were my only option and which had been putting
me through the wringer. She promised to be open and honest about her
fees and the behind the scenes fee structure even opening  the current
rate sheets to allow me to decide on whether to take more money for
closing or get my rate  lower than the thrilling rate of 4.37
fixed.when a couple of snags  came up she handled them like an air
traffic controller- literally hiring little old ladies over the phone
in a small town I had a second home in 3000 miles away to track down
documents in county clerks offices for $50 and overnight them. She got
the new lender to accept my already done appraisal and title
insurance. she found a government targeted zipcode grant I was
entitled to.she knew when to bully and when to flatter people like the
sellers attorney and realtor.and suggested creative structuring of
things like contract concessions to shepherd the closing through.
Did she deliver on her promises ? EVERY DAMN ONE OF THEM !!!!!!!!!
she literally had me processed approved and poached the loan number
from the other lender and got me closed in less than three weeks while
this other clown who had jerked me around for 8 months was still
trying to find some documents he had lost once again.Boy was he
surprised when he called to tell me he had extended my lock and I
would be charged a fee and I told him I was already close! Now that
was FUN!
FULL DISCLOSURE
I promised Vanessa I would sing her praises on here. But Gods honest
truth she truly rocks. she is trustworthy to a degree that’s rare
today and unheard of in this sleazy real estate racket,  extremely
competent,patient with you will explain clearly and in as much depth
as you wish whatever you ask  has great relationships with lenders
appraisers and their attorneys that work in your favor. and really
knows about the business.anyone can feel free to contact me personally
for more information.

vthatcher | 13 years and 8 months ago

string(1) "1"
object(WP_User)#4934 (8) {
  ["data"]=>
  object(stdClass)#4940 (12) {
    ["ID"]=>
    string(5) "72227"
    ["user_login"]=>
    string(9) "vthatcher"
    ["user_pass"]=>
    string(34) "$P$BX2HK6HferKXkKK.a693/AIaQvqYe.0"
    ["user_nicename"]=>
    string(9) "vthatcher"
    ["user_email"]=>
    string(22) "vthatcher@athccorp.com"
    ["user_url"]=>
    string(25) "/forums/users/vditty1979/"
    ["user_registered"]=>
    string(19) "2017-08-10 14:30:00"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(9) "vthatcher"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(72227)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

If you do a conventional loan- you will NOT have PMI as loan as the loan is at an 80% Loan to value.  Conventional loan in NY use the appraised Value.  If the appraisal was done FHA-  you can use it on the convetional loan.  Have the lender Flip the product to Conventional.  If they dont want to do it, they are just being lazy.  You can use that appraisal with any bank/broker as loan as it was an HVCC Appraisal.   FYI- An FHA loan will have PMI for atleast 5 Years no matter what the loan to value is.
Feel free to call me for rates.  We are in the low 4’s.   Vanessa Thatcher _ATLANTIC HOME CAPITAL_ Tel: 631-687-3510 x106 EFax: 631-918-5222 Cell: 631-672-4113

adam_dahill | 13 years and 8 months ago

string(1) "1"
object(WP_User)#4937 (8) {
  ["data"]=>
  object(stdClass)#4939 (12) {
    ["ID"]=>
    string(6) "176783"
    ["user_login"]=>
    string(11) "adam_dahill"
    ["user_pass"]=>
    string(34) "$P$BVbT/.9EbE6MTZNRIO4K4/iGsGDl3l0"
    ["user_nicename"]=>
    string(11) "adam_dahill"
    ["user_email"]=>
    string(20) "adamdahill@gmail.com"
    ["user_url"]=>
    string(39) "https://www.mortgagemaster.com/adahill/"
    ["user_registered"]=>
    string(19) "2013-06-24 16:57:52"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(11) "adam_dahill"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(176783)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

It’s based off the loan amount

PMI is different that FHA MI. All 30yr fixed FHA loans have 2 forms of MI regardless of the appraisal and LTV.  The upfront MI also known as the UFMIP which is equal to 1% of the loan amount. This is most often financed and not paid out of pocket at closing.

EXAMPLE

Purchase Price 500k
Loan Amount based on 96.5% LTV  482,500
UFMIP $4,825
Total FHA loan amount with financed UFMIP $487,325

Additionally all 30yr fixed FHA loans have a monthly MI
If your LTV is less than 95% it will be 1.1% of the total FHA loan divided over 12 months
If your LTV is greater than 95% it will be 1.15%

EXAMPLE with the above scenario @ 1.15% will have a $462.40 per month MI

The monthly MI stays on the loan for at least 5 years regardless of the Loan to Value.

PMI is a whole other scenario for non FHA loans and is based off the purchase price or appraised valeu whichever is lower.  It changes depending on the LTV, credit score, type of property, zip code, etc…

-Adam Dahill
WCS Lending
adahill@wcslending.com

Hope that helped 🙂

RBCG | 13 years and 8 months ago

string(1) "1"
object(WP_User)#4938 (8) {
  ["data"]=>
  object(stdClass)#4941 (12) {
    ["ID"]=>
    string(5) "13313"
    ["user_login"]=>
    string(4) "RBCG"
    ["user_pass"]=>
    string(34) "$P$BGIhhd7WJdhateRa3.9Ma4hMeh1xbQ0"
    ["user_nicename"]=>
    string(4) "rbcg"
    ["user_email"]=>
    string(18) "rb539@columbia.edu"
    ["user_url"]=>
    string(19) "/forums/users/rbcg/"
    ["user_registered"]=>
    string(19) "2017-08-10 13:38:08"
    ["user_activation_key"]=>
    string(0) ""
    ["user_status"]=>
    string(1) "0"
    ["display_name"]=>
    string(4) "RBCG"
    ["spam"]=>
    string(1) "0"
    ["deleted"]=>
    string(1) "0"
  }
  ["ID"]=>
  int(13313)
  ["caps"]=>
  array(2) {
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["cap_key"]=>
  string(15) "wp_capabilities"
  ["roles"]=>
  array(2) {
    [0]=>
    string(10) "subscriber"
    [1]=>
    string(15) "bbp_participant"
  }
  ["allcaps"]=>
  array(4) {
    ["read"]=>
    bool(true)
    ["level_0"]=>
    bool(true)
    ["subscriber"]=>
    bool(true)
    ["bbp_participant"]=>
    bool(true)
  }
  ["filter"]=>
  NULL
  ["site_id":"WP_User":private]=>
  int(1)
}

Nothing. The PMI (along with everything else) is based on the contract sale price. The appraised value simply confirms to the bank that the collateral (the house) for their loan is worth at least the loan amount. (FYI, we had an FHA mortgage too, so I know all about the FHA-style appraisal.)