Have equity in your home? Want a lower payment? An appraisal from AppraisALL Inc. can help you get rid of your PMI.When getting a mortgage, a 20% down payment is usually the standard. Considering the liability for the lender is usually only the difference between the home value and the sum remaining on the loan, the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and natural value variationsin the event a purchaser doesn't pay. The market was taking down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This additional policy covers the lender in case a borrower doesn't pay on the loan and the value of the home is less than the loan balance. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage payment and many times isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the costs, PMI is beneficial 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 homebuyers keep from bearing the expense of PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Wise homeowners can get off the hook a little earlier. The law states that, upon 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 get to the point where the principal is only 20% of the initial amount of the loan, it's essential to know how your home has appreciated in value. After all, any appreciation you've accomplished over time counts towards abolishing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Your neighborhood may not be following the national trends and/or your home might have gained equity before things settled down, so even when nationwide trends signify plummeting home values, you should realize that real estate is local. 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 understand the market dynamics of their area. At AppraisALL Inc., we know when property values have risen or declined. We're experts at analyzing value trends in Temecula, Riverside County and surrounding areas. Faced with information from an appraiser, the mortgage company will usually cancel the PMI with little trouble. At that time, the home owner can delight in the savings from that point on.
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