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I bought a home 6 months ago in Central, NJ, paid 360K. The mortgage company had the home appraised so we could finalize the loan, and the appraisal came in at 382K. We have an FHA mortgage and put down 5% which required that we carry PMI. I understand that it is fairly difficult to get this lifted (80/20 loan2value), but some ppl I have spoken with have indicated that we most likely have 22K in equity based on the appraisal. I was also told that our loan2value ratio would have to be 80/20 in order to have the PMI lifted.
Can anyone give me some insight into what I'm dealing with here? Do I currently have more equity in the home than just the down payment? Because I went the FHA route does that put any restrictions when I can have my PMI lifted?
I have another question regarding the property that has to do with assesments and a letter from my attorney that was used for the closing..but I'll ask that after I get a better idea of what I'm currently dealing with..
I bought a home 6 months ago in Central, NJ, paid 360K. The mortgage company had the home appraised so we could finalize the loan, and the appraisal came in at 382K. We have an FHA mortgage and put down 5% which required that we carry PMI. I understand that it is fairly difficult to get this lifted (80/20 loan2value), but some ppl I have spoken with have indicated that we most likely have 22K in equity based on the appraisal. I was also told that our loan2value ratio would have to be 80/20 in order to have the PMI lifted.
Can anyone give me some insight into what I'm dealing with here? Do I currently have more equity in the home than just the down payment? Because I went the FHA route does that put any restrictions when I can have my PMI lifted?
I have another question regarding the property that has to do with assesments and a letter from my attorney that was used for the closing..but I'll ask that after I get a better idea of what I'm currently dealing with..
Thank you in advance for any help...
The value of your home in any lender's eyes for the first 12 months is the purchase price or the appraised value...whichever one is less And like Debsi said, you are 'stuck' with mortgage insurance on your FHA loan for at least 5 years unless you refinance to a conventional loan or payoff the loan.
Appreciate the responses, and it looks as though I am stuck with the PMI for another 5 years. Thank you..
2nd question
I recieved a letter from my attorney who did our closing. The letter stated that based on our purchase price we might be paying too much in propertytaxes based on the properties assesment. He said their is an appeal process and its possible we could have our taxes lowered. My question..What is the likelihood that they will actually lower our property taxes? I don't have any firm numbers, with regards to the last assesment, but our propert taxes are currently a little less than 1000/month. Any help would be appreciated again..Thank You!
also..one other question..does the type of mortgage I have allow/not allow me to take out a HELOC based on the appraisal being 20K higher than the purchase price?
Appreciate the responses, and it looks as though I am stuck with the PMI for another 5 years. Thank you..
2nd question
I recieved a letter from my attorney who did our closing. The letter stated that based on our purchase price we might be paying too much in propertytaxes based on the properties assesment. He said their is an appeal process and its possible we could have our taxes lowered. My question..What is the likelihood that they will actually lower our property taxes? I don't have any firm numbers, with regards to the last assesment, but our propert taxes are currently a little less than 1000/month. Any help would be appreciated again..Thank You!
Check the county assessor's estimated market value vs. the appriased value. If the assessor has you considerably higher than the appraisal, find out how to contest. Bring your appraisal in to contest and the should address the discrepency. It may lower your tax bill.
also..one other question..does the type of mortgage I have allow/not allow me to take out a HELOC based on the appraisal being 20K higher than the purchase price?
property was assessed at 185,200--purchase price was 362K. What am I looking at here? Appraisal came in at 385K.
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