Good points here, but let's keep a couple things in mind:
- PMI isn't fun, agreed, but rushing the appraisal is like flipping a coin—you might get lucky, or you might end up out a few hundred bucks and still stuck with PMI. Seen it happen more than once...
- Markets fluctuate, and sometimes patience really pays off. If you're borderline on equity, waiting a few extra months might save hassle (and cash).
- On the flip side, if you're comfortably at or above 20% equity—maybe you've made extra payments or property values jumped significantly—then yeah, ditching PMI sooner rather than later usually makes sense.
- Also, don't forget that some lenders automatically remove PMI once you hit 78% loan-to-value. So double-check your mortgage docs. No point paying for an appraisal if you're close to automatic removal anyway.
Bottom line: Yes, PMI sucks. But jumping the gun can suck even more. Play it smart, check your numbers, and don't rush into that appraisal just yet...
"Markets fluctuate, and sometimes patience really pays off. If you're borderline on equity, waiting a few extra months might save hassle (and cash)."
This is spot-on advice. I learned this the hard way a couple years back when I was eager to drop PMI from one of my investment properties. The local market had been climbing steadily, and I was pretty confident I'd crossed that 20% threshold. So, without much hesitation, I ordered an appraisal—thinking it was a sure bet.
Well... turns out the appraisal came in just shy of the needed equity. Not only did I waste a good chunk of money on the appraisal itself, but I also had to continue paying PMI for several more months anyway. To make matters worse, property values continued rising afterward, and if I'd just waited another six months or so, I'd have comfortably cleared the mark without any stress or wasted cash.
Since then, I've become a lot more cautious about timing appraisals. Now I always double-check recent comparable sales in the area and give myself a comfortable buffer before pulling the trigger. And as mentioned earlier, some lenders automatically remove PMI at 78% LTV—definitely worth checking your loan documents closely. That automatic removal saved me from repeating my earlier mistake on another property.
Bottom line: patience and careful calculation really do pay off here. It's tempting to rush things when you're eager to ditch PMI payments, but taking a step back and letting the numbers guide you can save you both money and frustration in the long run.
That's a good point about waiting, but I'm curious—has anyone had luck challenging an appraisal that came in just under the threshold? I've heard mixed things about appealing appraisals...some say it's worth the effort, others say it's just throwing good money after bad. Wondering if it's ever actually worked out for someone here or if it's mostly a waste of time.
"I've heard mixed things about appealing appraisals...some say it's worth the effort, others say it's just throwing good money after bad."
I went through this exact scenario last year, so here's my two cents:
- Appealing can work, but only if you have solid comps to back you up. I spent a weekend digging through recent sales in my neighborhood and found two properties that were pretty similar but had higher valuations.
- Submitted those comps along with a polite but firm letter explaining why I thought the appraisal missed the mark. Honestly, I didn't expect much...
- Surprisingly, they bumped it up just enough to cross the threshold. Goodbye PMI!
- That said, I've heard plenty of stories where appeals went nowhere. It really depends on your local market and how thorough your initial appraisal was.
Bottom line: If you're close enough and have decent evidence, I'd say it's worth a shot. Worst case scenario, you're out a little time and maybe some minor fees—but best case, you save thousands over time.
Yeah, it's definitely hit or miss. My neighbor appealed theirs and got nowhere, but they didn't really have solid comps. Sounds like your homework paid off though...congrats on ditching PMI, that's gotta feel good.
