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Appraised 20% higher than purchase price.

Hi All! Looking for some suggestions...

I'm under contract for my first home and close in a couple days. I received a copy of the appraisal on the home and found out that it appraised for 20% higher than my purchase price. Which is great.

Purchase price: $299k Appraisal: $360k

So what do I do now? We clearly won't tell the seller but what can I do with this extra "equity" from day 1?

Here are some thoughts I have but feel free to add your own or tell my why my ideas are bad/good/impossible/etc.

1) Use equity toward an investment property 2) Use equity to upgrade home 3) Refinance to ditch PMI (isn't this based on the lower of the purchase price or appraisal)? Paying $200/mo for PMI. 4) Invest into stocks 5) nothing? Anything else?

Any ideas would be great!!!

submitted by /u/gaberooni54
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source https://www.reddit.com/r/RealEstate/comments/j1r1yb/appraised_20_higher_than_purchase_price/
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