How is PMI calculated if you buy a foreclosure and have instant equity?I am currently looking at a house that is valued somewhere around $300K. The house is a foreclosure and I offered the bank $265K for the house. Assuming they accept the offer, I am also going to put down $25K on the house. So the loan I am requesting would be valued at $240K (paying for closing cost out of pocket too, but that is separate). My question is does the bank calculate PMI based on the appraised value of $300K, or does it base it off the purchase price of the house of $265K?Second, if it is the purchase price, is there a way to get it appraised sooner (in a couple years) to get rid of PMI?Finally (sorry for so many questions), how long does a foreclosure offer take to accept?The area is actually Howard County MD near Jessup/Ellicott City/Columbia.Thanks!June 22 2010 - Columbia0YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.