Ducks4brkfast said:

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aggie appraiser said:

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jja79 said:

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You mentioned researching comps prior to the property inspection in your other post. Why would you do that? Shouldn't you know what type data you're looking for first?

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You research and pull comps prior to going to the property because you don't want to make multiple trips.

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What does this mean?

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All comparables in the report have to be driven by, at the very least, according to the rules. Most lenders also want current photos of said comparables.

Not a huge deal with your bog-standard HOA neighborhood, but with rural work it is a huge PITA. It can add hours in driving for the report.

If you need to add a comparable to the report for some reason, say the home was smaller than advertised and you need to bracket the GLA, you have to make another trip out to the subject's neighborhood to take a photo of the new comp. The more you're doing this, the less you're actually making money on other reports.

Doesn't make sense to me, but it's your business. It looks to me like you'd inspect the property and then research comps that are most similar to that property.

jja79 said:

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Doesn't make sense to me, but it's your business. It looks to me like you'd inspect the property and then research comps that are most similar to that property.

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See Bubel's comments above. The work is scattered all over the place and the one that turned out to be a metal building is about an hour drive (one way) away. Making the additional trip is an additional 2 hours behind the wheel. If spending two hours driving and the expense of time and gas doesn't make sense now, it would after a few weeks of driving and trying to make a living.

idAg09 said:

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fourth deck said:

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They are required to remove PMI when you reach 78% original LTV according to the original amortization schedule. I.e. you can't pay extra and have it removed automatically early. However, paying extra and getting it down to 80% does trigger the option of having you request removal and getting an appraisal or broker estimate.

I am currently in the same boat and just waiting for a good time this year to have someone come take a look at our place. The misinformation from the mortgage servicers are real. First time I called up they were trying to tell me some garbage about needing 75%. I had to dig out my original mortgage papers to back up my assumptions. Your original mortgage papers will probably also have the date that you are scheduled to reach 78%.

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Be careful and make sure you get accurate information and understand the terms. I just went through this based on what a Wells Fargo Rep told me and wasted $500.

For us, we had to reach 78% LTV for them to automatically drop the PMI. However, this LTV target is only valid on the original LTV when the house was purchased and appraised, not a current LTV with new appraisal.

If you want to use a new appraisal's LTV, the new threshold drops to 75%. This meant that my new LTV of 79% with the new appraisal still doesn't meet their requirements to drop PMI. I can pay down to hit 80% of original appraised value, but can't use the new appraisal to say I now am at 80%.

Sucks I lost $500, but lesson learned for me. Make sure you check and recheck!

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MI removal requirements on primary single family residence is:
1. Scheduled payment of 80% LTV based upon original appraised value the borrower can request removal of MI.

2. MI will automatically cancel based upon the scheduled payment at 78% LTV using original appraised value.

3. MI must be maintained for 2 years, after 2 years it can be removed if LTV is <75% based upon market value.

4. After 5 years of the mortgage the MI can be removed based upon new market value at 80% LTV.


You cannot use the original appraisal value to justify LTV calculations with the exception of the original amortization. In other words you cannot pay down your mortgage faster and expect to have MI removed at 75% or 80% LTV (depending on loan seasoning) without having an appraisal done to ensure market conditions haven't worsened since the loan was originated.

Rustys-Beef-o-Reeno said:

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I get that he wanted to get the correct comps.
However him asking you to pick them is not correct nor professional. If he didn't know he should inquire someone at his firm or recuse himself from the appraisal and defer to someone else.

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This!

Quote:

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3. MI must be maintained for 2 years, after 2 years it can be removed if LTV is <75% based upon market value.

4. After 5 years of the mortgage the MI can be removed based upon new market value at 80% LTV.

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Is this an absolute fact for all loans? The reason I ask is I have a loan with Wells Fargo. Used to be primary residence, now a rental. I refied the existing balance before moving out a couple years back. Ive called WF three times trying to get them to drop the PMI with a new appraisal. Each time they put me on hold for 10 minutes then come back and insist it is not an option until five years have passed. I'm currently at about 55% LTV. Had I known I would be stuck with the PMI for five years, I would have never gotten in to the situation.

None of it is an absolute fact for our friend. Every contract is written a little differently. Refer to your MI information from your original closing documents.