If your house apraises higher than your purchase price do you still have to pay PMI?

The leaser of the sales price or the appraised value is used to calculate the loan to value. In the case of a purchase transaction the higher appraised value will not affect any PMI requirements. Jack Cyrul 734-395-9027

Yes Jack and Casey have answered your question

The lender will always use the lowest price between the sale price or appraised value. If you purchase a home for $100K, but it's appraised at $150K, and your putting less than 20% down, then you will still need to pay PMI, since it's based on the lowest price (Sale price of $100K).. however, once you pay PMI for 24 months, you can have petition your lender and ask to have the PMI removed.. they would require an appraisal (at your expense), and so long as you have 20% equity or more, they will drop the PMI... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Yes. The lesser of the two values will be used to determine your Loan to Value. If you are over 80% you will have to pay some form of PMI. One option to consider is LPMI or Lender Paid Mortgage Insurance. Your lender will pay the premium for you in exchange for a higher interest rate. Depending on your situation this option may make sense for you.

Yes - in this case the mortgage insurance would be based on the sales price. An exception to this would be if you are buying the home from a family member and the difference is considered a "gift of equity".

YES. On a purchase, the down payment and related items like mortgage insurance are based off the purchase price. You get no extra love because the appraisal was higher. But down the road, it may make sense to refinance because of a better appraisal. www.MortgagesUnlimited.biz