Say Goodbye to PMI

Q: DEAR BOB: Thank you for the article on your Web site about getting rid of private mortgage insurance. Upon my request, my mortgage lender sent me the paperwork to cancel my PMI payments of $72.56 per month. I have owned my home about eight years. I am concerned the lender's appraisal will cause my property taxes to go up. Should I leave everything alone and continue paying PMI? -- Geri S.

A: DEAR GERI: You are worrying about nothing. A mortgage lender's professional appraisal of your home has absolutely nothing to do with your property tax assessment. Go ahead and get your home appraised by the lender's appraiser.

Only the local tax assessor -- not a licensed appraiser hired by your mortgage lender -- can reassess your property. If you have been paying PMI on your mortgage for eight years, you probably have at least the required 20 percent equity to get rid of that expensive premium.

DEAR BOB: Our father passed away without a will. Among his assets, he left 18.56 acres in his name free and clear. My brother and I agreed that I should buy him out. With whom do I speak to get this done? -- Jeanna F.

DEAR JEANNA: To transfer title to a property when there was no will left by the deceased owner, the estate must be probated by the probate court where your father was a resident.T

he agreement with your brother is irrelevant. Only the probate judge can order the 18.56 acres and other assets distributed according to the state law of intestate succession. For details, consult a local probate lawyer.

DEAR BOB: I know you recommend home buyers have their own buyer's agents, but when buying a brand-new house in a new subdivision that has model homes and a sales staff, should the buyer still have a buyer's agent? My father said he typically just deals directly with their sales staff. I presume the on-site salespeople get the full 6 percent commission and if I have a buyer's agent, the commission would be split. Is this correct? -- Dave D.

DEAR DAVE: No. Some home builders refuse to cooperate with a buyer's agent. But in today's buyer's market for homes in most cities, smart home builders are thrilled to pay buyer's agents a sales commission, which is typically 2 or 3 percent of the sales price.

You definitely need a buyer's agent when buying a brand-new house. A savvy buyer's agent can advise you on the pros and cons of a subdivision and the specific homes, including the builder's reputation. That's something you won't hear from the builder's salespeople.

DEAR BOB: My husband and I bought our first home 16 months ago. Our furnace just went out. We purchased a 12-month warranty, and it expired. Then we bought the same insurance for all our major appliances from a different company. But this insurance company refuses to help us because they say the furnace is rusted and has been "meddled with." Should the professional home inspector we hired at the time of purchase have told us the furnace was rusted? Should I inquire about why our inspector didn't tell us the furnace was in disrepair and rusted? Or should we forget it and try to come up with the cost of a new furnace? -- Susan P.

DEAR SUSAN: A professional home inspector usually checks a furnace for obvious problems. If the furnace operated well for 16 months, you can't say the inspector didn't do his job.

Although the 12-month home warranty expired and doesn't apply, perhaps that major appliance policy you later purchased includes the furnace if specifically mentioned. That second company wouldn't have sent an inspector unless there is possible coverage.