Have equity in your home? Want a lower payment? An appraisal from Associate Appraisals can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. The lender's risk is generally only the difference between the home value and the amount due on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, reselling the home, and typical value changes in the event a purchaser defaults. During the recent mortgage boom of the last decade, it was customary to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to endure the additional risk of the small down payment with Private Mortgage Insurance or PMI. This added plan protects the lender if a borrower defaults on the loan and the worth of the house is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and generally isn't even tax deductible, PMI can be expensive to a borrower. Opposite from a piggyback loan where the lender takes in all the losses, PMI is lucrative for the lender because they secure 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 can a home buyer avoid paying PMI?With the employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law promises that, at the request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. So, keen homeowners can get off the hook sooner than expected. It can take many years to arrive at the point where the principal is just 20% of the initial amount of the loan, so it's essential to know how your home has grown in value. After all, every bit of appreciation you've obtained over time counts towards abolishing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends indicate declining home values, be aware that real estate is local. Your neighborhood may not be heeding the national trends and/or your home may have acquired equity before things calmed down. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a hard thing to know. It is an appraiser's job to know the market dynamics of their area. At Associate Appraisals, we're masters at determining value trends in Akron, Summit County and surrounding areas, and we know when property values have risen or declined. Faced with figures from an appraiser, the mortgage company will most often remove the PMI with little anxiety. At which time, the homeowner can retain the savings from that point on.
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