DenverT Appraisal can help you remove your Private Mortgage InsuranceA 20% down payment is usually the standard when getting a mortgage. Since the liability for the lender is generally only the difference between the home value and the amount due on the loan, the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and natural value changeson the chance that a borrower is unable to pay. Lenders were taking down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. How does a lender manage the additional risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI takes care of the lender if a borrower is unable to pay on the loan and the market price of the home is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and oftentimes isn't even tax deductible, PMI can be costly to a borrower. Separate from a piggyback loan where the lender absorbs all the damages, PMI is lucrative for the lender because they secure the money, and they get the money 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 home buyers prevent bearing the expense 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 equals 78 percent of the initial loan amount. The law guarantees that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, acute homeowners can get off the hook sooner than expected. It can take many years to reach the point where the principal is just 20% of the initial loan amount, so it's essential to know how your home has appreciated in value. After all, all of the appreciation you've achieved over the years counts towards abolishing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Despite the fact that nationwide trends predict decreasing home values, realize that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home could have gained equity before things settled 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. As appraisers, it's our job to recognize the market dynamics of our area. At DenverT Appraisal, we're masters at identifying value trends in West End, Moore County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will generally eliminate the PMI with little effort. At which time, the home owner can relish the savings from that point on.
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