Home Buying & Real Estate Thread

5,182
2,383
Joined Feb 23, 2006
Question - Does increase in property value equal personal equity in terms of trying to eliminate PMI early?

Closed on a new construction home in December (signed the contract in May) and see that the builder increased the base price of our model by 60k. That doesn’t include the lot premium and basic, mandatory options. I’m confident the price of those have also gone up.

If I were to get the house reappraised, and show that we have 20% equity in the property based on principle payments made to date and increased property value, could we have PMI removed? That would save us a few hundred a month.
As long as the remainder of your loan is 80% of your home’s new appraised value, you should be able to request PMI cancellation. Appraisers will include some comps outside your development in your appraisal though.
 
7,647
11,558
Joined Aug 9, 2014
Question - Does increase in property value equal personal equity in terms of trying to eliminate PMI early?

Closed on a new construction home in December (signed the contract in May) and see that the builder increased the base price of our model by 60k. That doesn’t include the lot premium and basic, mandatory options. I’m confident the price of those have also gone up.

If I were to get the house reappraised, and show that we have 20% equity in the property based on principle payments made to date and increased property value, could we have PMI removed? That would save us a few hundred a month.
As long as the remainder of your loan is 80% of your home’s new appraised value, you should be able to request PMI cancellation. Appraisers will include some comps outside your development in your appraisal though.
Does the builder increasing prices matter for the appraisal? Cuz that’s what the refinance is based off isn’t it? Comparable home sales - which if the builder raised prices and there’s been sales, I guess that would do the trick. I guess I answered my own question lol.
 
5,182
2,383
Joined Feb 23, 2006
Won’t that affect your property tax?
Your tax assessment would be done by your local county’s appraisal and that would affect your property tax. Removing PMI would require your lender to do an appraisal. I have no idea how much they would influence each other.
 
5,182
2,383
Joined Feb 23, 2006
Does the builder increasing prices matter for the appraisal? Cuz that’s what the refinance is based off isn’t it? Comparable home sales - which if the builder raised prices and there’s been sales, I guess that would do the trick. I guess I answered my own question lol.
It’s may not just be the homes in your builder’s division though. They could include comps within a certain radius if they wanted to.
 

wr

10,156
8,083
Joined Mar 4, 2011
Comps are based on similar sq ft., trim, location and sales price. They can expand search if no comps found, or pay for independent appraisal. Other than that it's just basic reports generated off of that information.

Definitely read your appraisal clause in your contracts. You are not bound by the first appraisal you get.
 
38,725
18,515
Joined Dec 3, 2009
Question - Does increase in property value equal personal equity in terms of trying to eliminate PMI early?

Closed on a new construction home in December (signed the contract in May) and see that the builder increased the base price of our model by 60k. That doesn’t include the lot premium and basic, mandatory options. I’m confident the price of those have also gone up.

If I were to get the house reappraised, and show that we have 20% equity in the property based on principle payments made to date and increased property value, could we have PMI removed? That would save us a few hundred a month.
I’m not sure if it works the same, but we built our home and signed the contract for 520k when it was all said and done at completion the house cost us 560k with the upgrades we added along the way, the house however due to Covid inflation, appraised at 780k before we moved in we had a ton of equity and we no longer had to worry about PMI
 
7,264
5,325
Joined Aug 19, 2015
I’m not sure if it works the same, but we built our home and signed the contract for 520k when it was all said and done at completion the house cost us 560k with the upgrades we added along the way, the house however due to Covid inflation, appraised at 780k before we moved in we had a ton of equity and we no longer had to worry about PMI
You requested the appraisal? Or your lender did and then it dropped the PMI?
 
4,828
1,917
Joined Jul 31, 2012
Yup... Exactly what I did as well

I put 10% down when I bought the house, did renovations and then got it appraised and ended up being more than 20%
Houses went up in my area with the covid hike. How do I get the ball rolling. Contact my lender?
 
10,792
1,677
Joined May 2, 2007
Houses went up in my area with the covid hike. How do I get the ball rolling. Contact my lender?
Yea my area been going up like crazy now too but I just bought two years ago... Not going anywhere now

Yea you can contact your current lender or go through another company... Shop around and see who gives better refi rate
 
9,840
7,892
Joined Dec 19, 2013
Your tax assessment would be done by your local county’s appraisal and that would affect your property tax. Removing PMI would require your lender to do an appraisal. I have no idea how much they would influence each other.
I read that wrong. Thanks for clarifying.
 
331
663
Joined Jul 18, 2012
When I could actually get property in Los Angeles I would treat it like a personal home and remodel it over a year or 2. Then sell. Helps for tax purposes too.
Could you elaborate on this please.?
What are the tax benefits exactly.?

If a house that was purchased just under three years ago has appreciated about $90k(per recent comp sale prices and Redfin/Zillow value estimates) would it be wise to sell.?

What would you guys do.? Sell and take profits now, or continue to ride it out and hope for continued steady appreciation.??
 
9,840
7,892
Joined Dec 19, 2013
Could you elaborate on this please.?
What are the tax benefits exactly.?

If a house that was purchased just under three years ago has appreciated about $90k(per recent comp sale prices and Redfin/Zillow value estimates) would it be wise to sell.?

What would you guys do.? Sell and take profits now, or continue to ride it out and hope for continued steady appreciation.??
I bought and sold duplexes so I was able to get rid of capital gains by living in one and renting the other. 250k for single and 500k for married
 
7,264
5,325
Joined Aug 19, 2015
Anyone ever build a deck? Ours is a POS after getting beat down by the sun for years. We tried power washing + scraping old "deck paint" + chemicals and then re-painting (with Behr Deckover) a few years ago and it didn't even last a full year.

Now trying to determine if we should replace the top-decks + railing + steps, or rip the whole mf down and start over. And whether we should use pressure treated vs. cedar vs. composite wood. I'm leaning composite because the sun + dry heat here causes problems for the other types.
 
Top Bottom
  AdBlock Detected

Sure, ad-blocking software does a great job at blocking ads, but it also blocks some useful and important features of our website. For the best possible site experience please take a moment to disable your AdBlocker or head over to our upgrade page to donate for an ad-free experience Upgrade now