Corrie Appraisal & Consulting, Inc. can help you remove your Private Mortgage InsuranceA 20% down payment is typically accepted when getting a mortgage. Considering the risk for the lender is often only the remainder between the home value and the sum outstanding on the loan, the 20% provides a nice cushion against the costs of foreclosure, reselling the home, and regular value changesin the event a borrower doesn't pay. Lenders were working with down payments down to 10, 5 and even 0 percent during the mortgage boom of the last decade. How does a lender manage the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional policy protects the lender in the event a borrower is unable to pay on the loan and the value of the property is less than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and frequently isn't even tax deductible, PMI can be pricey to a borrower. Opposite from a piggyback loan where the lender absorbs all the deficits, PMI is lucrative for the lender because they secure the money, and they get paid 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 buyers prevent bearing the cost of PMI?The Homeowners Protection Act of 1998 makes the lenders on most loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Keen home owners can get off the hook beforehand. The law stipulates that, upon request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. It can take countless years to get to the point where the principal is just 20% of the original amount of the loan, so it's necessary to know how your home has grown in value. After all, every bit of appreciation you've accomplished over time counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Your neighborhood might not be following the national trends and/or your home could have gained equity before things settled down, so even when nationwide trends indicate falling home values, you should realize that real estate is local. The toughest thing for most home owners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can certainly help. As appraisers, it's our job to keep up with the market dynamics of our area. At Corrie Appraisal & Consulting, Inc., we're experts at analyzing value trends in Charleston, Coles County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will often cancel the PMI with little anxiety. At which time, the homeowner can retain the savings from that point on.
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