Let JW Appraisal Services, LLC help you learn if you can eliminate your PMIIt's generally known that a 20% down payment is accepted when getting a mortgage. The lender's liability is oftentimes only the difference between the home value and the amount outstanding on the loan, so the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and natural value changes on the chance that a purchaser is unable to pay. Banks were taking 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 endure the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplementary policy covers the lender if a borrower is unable to pay on the loan and the worth of the home is lower than what the borrower still owes on the loan. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times 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 acquire the money, and they receive payment 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 can home owners avoid bearing the cost of PMI?The Homeowners Protection Act of 1998 makes the lenders on most loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law stipulates that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, keen homeowners can get off the hook ahead of time. It can take many years to reach the point where the principal is only 20% of the original loan amount, so it's important to know how your home has grown in value. After all, all of the appreciation you've gained over the years counts towards removing PMI. So why pay it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends predict plunging home values, be aware that real estate is local. Your neighborhood may not be following the national trends and/or your home could have secured equity before things settled down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. As appraisers, it's our job to understand the market dynamics of our area. At JW Appraisal Services, LLC, we know when property values have risen or declined. We're masters at determining value trends in Marion, McDowell County and surrounding areas. When faced with information from an appraiser, the mortgage company will often cancel the PMI with little trouble. At that time, the homeowner can relish the savings from that point on.
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