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I'm kind of curious, does the fact that my home appraised higher affect mortgage insurance payment at all? It appraised for about 2% higher than I'm paying for it, and it'd be nice to remove a year of mortgage insurance, if it's possible.

My loan will be a conventional loan.

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up vote 7 down vote accepted

It depends on the bank's underwriting policies.

Most banks will use the price paid for LTV calculations. Later on, you usually have an opportunity to cancel PMI if your home's value reaches a certain percentage over the initial valuation.

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Yes and no. "It depends on the bank" is absolutely correct; where I disagree is that I see underwriters using the appraised value for LTV. Ask your lender which they use. – Benjamin Chambers Jul 16 '12 at 3:29

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