Mortgage insurance is typically available if you are trying to borrow up to 95% of appraisal on conventional loan, and to 97.75 for FHA loan.?? If the appraisal (or the applicant profile) does not fit at those levels, there is no equity protection to the lender.
If you feel your appraisal wasn't done accurately there are dispute processes available.??
Source: http://www.zillow.com/advice-thread/Another-low-appraisal-ruins-a-refinance/476201/
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