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> That's because 20% is based on the current appraisal value of the property, not the purchase price. With Bay Area and other real estate markets appreciating s
by jdmichal 10y ago
> That's because 20% is based on the current appraisal value of the property, not the purchase price. With Bay Area and other real estate markets appreciating so much, it's a ticking time bomb to get out of PMI.
I think you have that reversed. If values are rising, you have to do less work to get to 80% LTV (loan-to-value).
Example: I put $10 down on $100 worth of stuff with a $90 loan, giving a 90% LTV. If the value of stuff jumps to $120, then that $90 loan is now at 75% LTV, with zero payments made.