Let Corrie Appraisal & Consulting, Inc. help you discover if you can eliminate your PMIWhen buying a house, a 20% down payment is typically the standard. Considering the risk for the lender is generally only the difference between the home value and the amount outstanding on the loan, the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and regular value fluctuationson the chance that a purchaser defaults. The market was taking down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. How does a lender handle the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added policy covers the lender in case a borrower doesn't pay on the loan and the market price of the home is lower than the loan balance. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and frequently isn't even tax deductible, PMI is pricey to a borrower. Unlike a piggyback loan where the lender takes in all the deficits, PMI is lucrative for the lender because they secure the money, and they get paid if the borrower defaults. 
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 refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Savvy homeowners can get off the hook beforehand. The law promises that, at the request of the home owner, the PMI must be released when the principal amount reaches only 80 percent. It can take countless years to reach the point where the principal is just 20% of the original amount borrowed, so it's important to know how your home has increased in value. After all, any appreciation you've obtained over time counts towards abolishing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends signify declining home values, realize that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home may have acquired equity before things calmed down. A certified, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It's an appraiser's job to understand the market dynamics of their area. At Corrie Appraisal & Consulting, Inc., we know when property values have risen or declined. We're experts at recognizing value trends in Charleston, Coles County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often cancel the PMI with little anxiety. At which time, the homeowner can delight in the savings from that point on.
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