Have equity in your home? Want a lower payment? An appraisal from Appraisal-One can help you get rid of your PMI.It's largely known that a 20% down payment is common when getting a mortgage. The lender's liability is generally only the difference between the home value and the amount due on the loan, so the 20% provides a nice cushion against the costs of foreclosure, reselling the home, and natural value changes on the chance that a borrower doesn't pay. The market was accepting down payments as low as 10, 5 and often 0 percent during the mortgage boom of the mid 2000s. How does a lender handle the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added policy protects the lender if a borrower doesn't pay on the loan and the market price of the house is less than the loan balance. PMI is pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times isn't even tax deductible. Contradictory to a piggyback loan where the lender absorbs all the costs, PMI is profitable 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 homebuyers can prevent bearing the cost of PMIWith the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law designates that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, keen home owners can get off the hook a little earlier. Since it can take many years to get to the point where the principal is just 20% of the original loan amount, it's essential to know how your home has increased in value. After all, all of the appreciation you've acquired over the years counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Even when nationwide trends forecast falling home values, understand that real estate is local. Your neighborhood might not be adopting the national trends and/or your home may have acquired equity before things calmed down. The difficult thing for most homeowners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to understand the market dynamics of their area. At Appraisal-One, we're experts at identifying value trends in Huntington Beach, Orange County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will generally eliminate the PMI with little anxiety. At which time, the home owner can enjoy the savings from that point on.
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