[callowayt1]

appraised for more than the loan I need to buy the house? I heard from friend that if the house is appraised for $149k and I am getting the house for $100k the since the appraisal is more than 20% of the loan I need i won't have to pay PMI. Is this true?

[mortgagequeen]

No this is not true. On a purchase transactions, lenders will lend based on the sales price or the appraised value, whichever is LESS. You can, however, refinance your loan shortly after you purchase to get a new mortgage without PMI. There is a cost involved but it is worth it to eliminate that extra monthly payment. How long after your purchase you are allowed to refinance will depend on what type of loan you are in and what type of new loan you are getting. Speak with your lender about your intention to refinance as soon after the purchase as possible so they can best advise you about what loan products you should look into. Hope this helps. Let me know if you have any questions.