Let AAA-Appraisals help you discover if you can get rid of your PMIIt's largely known that a 20% down payment is the standard when purchasing a home. Because the liability for the lender is usually only the difference between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and typical value variationson the chance that a borrower is unable to pay. During the recent mortgage upturn of the last decade, it was common to see lenders commanding down payments of 10, 5 or sometimes 0 percent. A lender is able to manage the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower doesn't pay on the loan and the value of the home is less than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and many times isn't even tax deductible, PMI is costly to a borrower. Separate from a piggyback loan where the lender absorbs all the losses, PMI is advantageous for the lender because they acquire the money, and they receive payment if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can avoid bearing the expense of PMIWith the implementation of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Acute home owners can get off the hook ahead of time. The law designates that, at the request of the homeowner, the PMI must be dropped when the principal amount equals just 80 percent. Since it can take countless years to reach the point where the principal is only 20% of the initial amount of the loan, it's necessary to know how your home has appreciated in value. After all, every bit of appreciation you've accomplished over time counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood may not be adhering to the national trends and/or your home may have gained equity before things settled down, so even when nationwide trends hint at plummeting home values, you should understand that real estate is local. The toughest thing for many home owners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. It is an appraiser's job to understand the market dynamics of their area. At AAA-Appraisals, we know when property values have risen or declined. We're experts at analyzing value trends in JONESBORO, Clayton County and surrounding areas. Faced with data from an appraiser, the mortgage company will usually eliminate the PMI with little anxiety. At that time, the homeowner can enjoy the savings from that point on.
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