Have equity in your home? Want a lower payment? An appraisal from Perry Appraisals can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. The lender's liability is usually only the remainder between the home value and the sum due on the loan, so the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and typical value changes on the chance that a borrower is unable to pay. During the recent mortgage boom of the last decade, it became common to see lenders commanding down payments of 10, 5 or sometimes 0 percent. A lender is able to handle the increased risk of the low down payment with Private Mortgage Insurance or PMI. PMI protects the lender if a borrower defaults on the loan and the market price of the property is lower than the loan balance. PMI can be pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible. It's favorable for the lender because they collect the money, and they receive payment if the borrower is unable to pay, different from a piggyback loan where the lender consumes all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How buyers can prevent bearing the expense of PMIThe Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Acute home owners can get off the hook ahead of time. The law promises that, at the request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. Because it can take countless years to reach the point where the principal is just 20% of the original amount of the loan, it's important to know how your home has grown in value. After all, every bit of appreciation you've gained over time counts towards dismissing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be reflecting the national trends and/or your home might have gained equity before things cooled off, so even when nationwide trends forecast plunging home values, you should realize that real estate is local. The toughest thing for almost all home owners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Perry Appraisals, we know when property values have risen or declined. We're experts at pinpointing value trends in Granite Falls, Caldwell County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often drop the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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