PMI REMOVAL
A real estate appraisal is required to remove Private Mortgage
Insurance (PMI). This is the insurance the lender purchases to
cover the value difference between the loan amount if the
down payment is less than 20% of the purchase price. This is
known as the loan-to-value (LTV) ratio of the loan. In 1998,
Congress passed the Homeowners Protection Act which requires
Lenders remove the PMI payments when the LTV conditions have
been met. (The loan is calculated to be less than 80% of the current
value of the home.) The costs of the appraisal are recovered in just
PMI Removal a few months after the PMI has been removed from the payment.
TAX ASSESSMENTS ON PROPERTIES
A real estate appraisal is needed to provide the current market
value of a property should values decline. Although there are other
sources to obtain value estimates, an appraisal by a certified state
licensed appraiser will give creditable guideance to the assessor to
make a decision to lower the value.
PROBATE & ESTATE APPRAISALS
A real estate appraisal is required to determine the current fair
market value of any real property that has been left in trust or
is subject to Probate. It is required for a particular date time for tax
purposes and any requirements for heirs to the estate.
INSURANCE APPRAISALS
A real estate appraisal can be required by an insurance company for
replacement costs; land to building ratio; age, location; zoning and
many other valuation purposes.
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License No. AG004526 