From: pilam99@yahoo.com (Mike)
Newsgroups: misc.consumers.house
Subject: Re: Buying a new house PMI or PiggyBack
Date: 7 Apr 2004 06:01:02 -0700

My experience has been, the appraiser will value the house at exactly
the purchase price. I was in a similar situation and what I did what
bit the bullet on PMI and then refinanced a couple years later and was
able to get the house appraised much higher. When buying a house, it's
hard to justify that the house is woth any more than what you're
paying for it (market).


rpijw@hotmail.com (Jim Williams) wrote in message news:<5eb0104f.0404060845.73d0a330@posting.google.com>...
> I'm buying a new home. I have a few questions concerning if I should
> do PMI or Piggyback. My mortgage person has been "unavailable" to
> answer these questions for me. The house price is 257000. This is
> considerably less then some of the other home prices in the
> neighborhood. About (30-50K). I think we got a great deal. My wife and
> I looked at the same house with all the same amenities, That seller
> was asking 295,000 The person selling their home to us is in a "must
> sell" as they are relocated to a different state next month. They sold
> the home to us FSBO.
> 
> Here are my questions. I've read a lot about PMI and piggyback? In our
> case, which is better? We are putting down 5%. I've heard that if our
> home appraisal is for a lot more then selling price we may not have to
> pay PMI. Is this true? In that case we should have a lot of equity
> already. What drives the appraisal? The home behind us sold for 280k
> last month which was a smaller home. Our lock in rate for 30 years is
> 5.37. The broker said that if we do a piggyback the second mortgage
> would be at a rate of 7.25.  Does that seem right?
> 
> Any feedback?