Originally Posted by Stanley Nickels
The value of my house is currently about 90% of what it was when I bought it, and I owe 83% of it's current valuation. I'm worried I might have to pay PMI because it's dropped in value. But the loan is less than its appraised value.
A lender *may want you to kick in cash to bring that to 80%
It would all depend on the appraisal most likely. So getting a lender who does the appraisal at no or little cost (their pocket) would be good so if the appraisal was short, you could protest or walk away without getting hit.
I believe 80 is the magic number for PMI but I'm not completely sure, since as an investor I cant make offers with less than 25-30% down.