Appraisal Professionals can help you remove your Private Mortgage InsuranceA 20% down payment is typically the standard when getting a mortgage. The lender's risk is often only the difference between the home value and the amount outstanding 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 borrower defaults. Lenders were accepting down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. How does a lender endure the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This additional policy takes care of the lender in case a borrower defaults on the loan and the market price of the house is less than what is owed on the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible, PMI can be expensive to a borrower. It's lucrative for the lender because they acquire the money, and they get paid if the borrower is unable to pay, unlike a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a buyer refrain from paying PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law states that, at the request of the homeowner, the PMI must be dropped when the principal amount equals just 80 percent. So, acute homeowners can get off the hook ahead of time. It can take countless years to get to the point where the principal is only 20% of the initial amount borrowed, so it's important to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Even when nationwide trends signify plunging home values, be aware that real estate is local. Your neighborhood might not be minding the national trends and/or your home could have secured equity before things cooled off. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. It is an appraiser's job to recognize the market dynamics of their area. At Appraisal Professionals, we're masters at identifying value trends in Kyle, Hays 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 drop the PMI with little anxiety. At which time, the home owner can delight in the savings from that point on.
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