Have equity in your home? Want a lower payment? An appraisal from Mid State Appraisal Group can help you get rid of your PMI.It's largely understood that a 20% down payment is accepted when getting a mortgage. Considering the liability for the lender is usually only the remainder between the home value and the sum outstanding on the loan, the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and typical value variationsin the event a borrower defaults. Lenders were working with down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the increased risk of the low down payment with Private Mortgage Insurance or PMI. This added policy takes care of the lender in the event a borrower doesn't pay on the loan and the worth of the house is less than what is owed on the loan. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and often isn't even tax deductible. Separate from a piggyback loan where the lender takes in all the damages, PMI is favorable for the lender because they secure the money, and they get paid if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home buyers can keep from bearing the cost of PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Acute home owners can get off the hook a little earlier. The law promises that, at the request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. Since it can take many years to arrive at the point where the principal is just 20% of the original loan amount, it's crucial to know how your home has increased in value. After all, all of the appreciation you've gained over the years counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be following the national trends and/or your home may have acquired equity before things calmed down, so even when nationwide trends hint at decreasing home values, you should understand that real estate is local. The difficult thing for almost all home owners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. It is an appraiser's job to know the market dynamics of their area. At Mid State Appraisal Group, we know when property values have risen or declined. We're experts at analyzing value trends in Clark, Union County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often remove the PMI with little effort. At that time, the home owner can relish the savings from that point on.
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