RustNeverSleeps
Junior Member
- Joined
- May 15, 2007
- Professional Status
- Certified Residential Appraiser
- State
- Texas
My neighbors are talking to their bank about getting PMI removed. It's been over 3 years since they bought their house, but they don't have the LTV based on the original purchase price for PMI removal. Home values in the neighborhood have increased roughly 40% in this time period (I'm not making this up as it's based on market stats and recent sales). They have made roughly $10k of improvements (roughly 10% of the original purchase price).
Here is what I don't understand. The bank has given them 2 options:
Option 1: An interior BPO by a licensed appraiser for $150 and the decision to remove PMI will be based on 80/20 LTV of current market value.
Option 2: An interior Appraisal (1004) for $350 by a licensed appraiser and the decision based on 75/25 LTV of original purchase price plus value of improvements. Maybe, and this is a big maybe, they might consider the current market value.
Does this make any sense? Why would more credibility be given to a BPO? Do appraisers really do BPO's? Wouldn't it be an appraisal if an appraiser gives an opinion of value? :Eyecrazy:
Here is what I don't understand. The bank has given them 2 options:
Option 1: An interior BPO by a licensed appraiser for $150 and the decision to remove PMI will be based on 80/20 LTV of current market value.
Option 2: An interior Appraisal (1004) for $350 by a licensed appraiser and the decision based on 75/25 LTV of original purchase price plus value of improvements. Maybe, and this is a big maybe, they might consider the current market value.
Does this make any sense? Why would more credibility be given to a BPO? Do appraisers really do BPO's? Wouldn't it be an appraisal if an appraiser gives an opinion of value? :Eyecrazy: