MND Q&A

If appraisal is more than purchase price, could I convince lender to charge less for PMI?

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Say I put 5% down, but the appraisal comes in higher, giving me instant equity such that my equity would be above 10%. Would I get the 10% PMI rate? What if it gave me equity above 20%? I’m guessing this situation is pretty rare, but I am just curious.


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Nice idea, but no cigar. On a purchase, the home is considered to be worth the lesser of the sales price or appraised value. On the good side, at least you’ll know you got a good price on the property, these days appraisals come in below purchase price much more often than above.

Answered 6 months ago
Ted Rood ✎
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