Appraisal question

I read another post below where someone mentionned that their appraisal came in above what they are paying, and someone else responded that they cane use that extra money towards the down payment.

We just had our appraisal done 2 days ago and it came in $500 over what we're actually paying. It's not much over, but its something.

Are we supposed to get that money back or something?? I'm not quite sure I understand what it actually means when your home is appraised higher than you're actually paying for it. Can someone explain this to me?

Re: Appraisal question

Its just means you can count it towards your equity for reducing the amount of time you have to pay PMI

So if you re buying a 100k home and putting down 90 k, you have 10% equity. But then the house appraises for 110k (I realize these are slight off numbers). Now you have 20k of equity and its like putting down 20% so you wont have to pay PMI.


You don actually get money back. And unfortunatly, 500 dollars isnt going to make a much of a dent in the difference.

Message edited 6/26/2008 7:21:45 AM.

Re: Appraisal question

In our case we are doing a seller's concession (rolling the closing costs into the mortgage)

So our appraisal HAD to come back for more than what we got the house for. The bank wouldn't do it otherwise.

Luckily it came in 25K over. However, we are not taking a mortgage out for that much, only about 10k more.

Re: Appraisal question