I get the steady-payoff approach, but has anyone else had an appraisal surprise that actually worked in their favor? A few years back, I was convinced I'd be stuck with PMI for another two or three years at least. Then a neighbor's place sold way above asking, and suddenly the comps in my area shot up. Figured I'd roll the dice and get an appraisal done—turned out my equity had jumped enough to ditch the PMI early. Totally unexpected.
I agree it's usually a gamble, but sometimes market shifts can actually cut you a break. Still, I wouldn't count on it happening again anytime soon... Anyone else seen this happen, or was I just lucky?
Had something similar happen a couple years ago:
- Bought a fixer-upper in a neighborhood that was just starting to turn around. Figured I'd be stuck with PMI for at least 4-5 years.
- Did some basic upgrades—nothing fancy, mostly cosmetic stuff like paint, flooring, and landscaping.
- Out of nowhere, a developer bought two houses down the street, tore them down, and built brand-new homes priced way above the neighborhood average.
- Suddenly, comps jumped significantly. Decided to get an appraisal just to see where I stood.
- Appraisal came back way higher than expected, and I was able to drop PMI about two years earlier than planned.
Definitely agree it's not something you can count on regularly. Market shifts can be unpredictable, and I've seen plenty of appraisals go the other way too. But yeah, sometimes you catch a lucky break...
Interesting to hear how that worked out for you. I'm in a similar boat right now:
- Bought my first place about a year ago, also in an "up-and-coming" area.
- Done some minor upgrades—mostly paint, fixtures, and a bit of landscaping.
- Haven't seen any big developer moves yet, but a couple neighbors have started major renovations.
Wondering if that'll be enough to bump up comps significantly or if I'll be stuck with PMI for the long haul... Guess I'll just wait and see.
"Wondering if that'll be enough to bump up comps significantly or if I'll be stuck with PMI for the long haul... Guess I'll just wait and see."
Yeah, I feel you on this one. When I bought my first place, everyone was buzzing about how the neighborhood was "on the verge" of blowing up. Did some similar upgrades—fresh paint, new fixtures, even splurged on a deck out back. Honestly though, comps didn't budge much until a couple bigger developments popped up nearby. Minor upgrades help curb appeal, sure, but in my experience, it's those bigger moves that really shift values enough to ditch PMI. Fingers crossed your neighbors' renovations spark something bigger down the line...
Honestly, neighborhood upgrades can be hit or miss. But don't underestimate smaller improvements—I've seen appraisers bump comps enough to ditch PMI just from updated kitchens or bathrooms. Might depend on your local market though...
