PMI & bank appraisal question, any recourse?
I have a question that I'm hoping any of you can give advice on because our bank's home appraiser cost us quite a lot of money and I'm wondering if we have any recourse?
We tore down and built a new house last year. At the time, the bank had an appraiser look over our plans and budget and give them an appraisal which came in at $275k. Based on our existing mortgage (55k) and new mortgage for the build ($182k), we would not have the requisite 20% equity to avoid mortgage insurance. However, we truly believed the appraiser was wrong based on homes that were selling in our area, and to prove our point, we requested another bank appraisal upon completion of our build (in order to get a HELOC), and sure enough, the new appraisal came in at 360k - with the 2nd bank appraiser telling us we would get "at least" 420k once the landscaping and garage were complete.
The reason I'm now irked is because if the 1st appraiser had given us a proper assessment (we did not upgrade during the build as we had picked everything out ahead of time so our assesser knew exactly what finishes & materials we were using), then the new mortgage would not have required the PMI fees because with our home value of 360k, and loan of 237k, we clearly had 20% equity and therefore would not need PMI - which is what I said in the beginning. But because the 1st bank appraiser was so far off the mark, we had to pay over $5000+ in mortgage insurance fees and I can't help feeling ripped off because this guy didn't give us an accurate assessment - I mean, that's a fairly big "mistake" to be off by $85,000 in my books.
Is there anything I can do? I'd sure prefer having that money in my pocket!! TIA.