Really good points here. I'd just add from personal experience:
- PMI felt like a huge deal at first, but honestly, once I looked at the monthly numbers, it wasn't as scary.
- Refinancing is key...did mine last year after just a couple years of payments and got rid of PMI earlier than expected.
- Zillow estimates are definitely hit-or-miss. Mine was off by almost $20k (ouch), but the appraisal still worked out.
Bottom line: crunch your own numbers—your mileage may vary!
"Zillow estimates are definitely hit-or-miss. Mine was off by almost $20k (ouch), but the appraisal still worked out."
Yeah, Zillow can be pretty wild sometimes. When I refinanced, their estimate had me convinced I'd easily ditch PMI, but the appraisal came in lower than expected—still enough to drop PMI, thankfully, but not by much. Also, don't overlook home improvements; I redid my kitchen countertops and flooring, and that bumped my appraisal just enough to cross the threshold. Small upgrades can really pay off in these situations...
Also, don't overlook home improvements; I redid my kitchen countertops and flooring, and that bumped my appraisal just enough to cross the threshold.
Yeah, Zillow's estimates can be all over the map. Had a client recently whose appraisal came in way lower than Zillow predicted—almost derailed their refinance plans. Curious, did your appraiser specifically mention those kitchen upgrades as a factor?
Appraisers usually don't spell out specific upgrades item-by-item, but kitchen and bathroom improvements almost always carry weight. In my experience, appraisers tend to look at overall condition, quality, and comparable sales in the area. Zillow's algorithm just can't capture those nuances—it's more of a blunt instrument. If you're close to ditching mortgage insurance, strategic upgrades like kitchens or flooring are often worth the investment, especially if they align with neighborhood standards.
"Zillow's algorithm just can't capture those nuances—it's more of a blunt instrument."
Haha, blunt instrument is right... Zillow had my place jumping up and down like a yo-yo last year. Anyway, interesting point about kitchens and bathrooms—I get they're important, but do appraisers really not pay attention to smaller stuff like fresh paint or landscaping? I mean, I just redid my front yard (nothing fancy, just some shrubs and mulch), hoping it'd help nudge me over the PMI line. Maybe wishful thinking...?
