I’m in escrow on a house that I’m putting 10% down on. Our offer was 260,000. The loan would be 234,000. The appraisal came it at 275,000. My question is whether the PMI would be based on the purchase price or the appraisal. I ask because if I did my math right, the LTV would be 85% if it was based on the appraisal.
It would be the purchase price in this case. It’s really the lenders choice but the more conservative and correct choice is taking the lower of the purchase price or the appraisal value as far as a risk mitigation strategy so that is the one they chose. This prevents a poor appraisal or a crazy high offer from increasing the lenders risk.
Permabear, prop 13 has nothing to do with private mortgage insurance.
It would be the purchase price in this case. It’s really the lenders choice but the more conservative and correct choice is taking the lower of the purchase price or the appraisal value as far as a risk mitigation strategy so that is the one they chose. This prevents a poor appraisal or a crazy high offer from increasing the lenders risk.
Permabear, prop 13 has nothing to do with private mortgage insurance.
It would be the purchase price in this case. It’s really the lenders choice but the more conservative and correct choice is taking the lower of the purchase price or the appraisal value as far as a risk mitigation strategy so that is the one they chose. This prevents a poor appraisal or a crazy high offer from increasing the lenders risk.
Permabear, prop 13 has nothing to do with private mortgage insurance.
It would be the purchase price in this case. It’s really the lenders choice but the more conservative and correct choice is taking the lower of the purchase price or the appraisal value as far as a risk mitigation strategy so that is the one they chose. This prevents a poor appraisal or a crazy high offer from increasing the lenders risk.
Permabear, prop 13 has nothing to do with private mortgage insurance.
