Have equity in your home? Want a lower payment? An appraisal from Azar Appraisal Services can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. Considering the risk for the lender is oftentimes only the remainder between the home value and the amount due on the loan, the 20% adds a nice buffer against the costs of foreclosure, selling the home again, and typical value changesin the event a purchaser doesn't pay. The market was working with 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 increased risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This supplemental plan guards the lender if a borrower defaults on the loan and the market price of the house is less than what is owed on the loan. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and frequently isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the damages, PMI is beneficial for the lender because they collect the money, and they get the money if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homeowners prevent paying PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law stipulates that, upon request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. So, keen home owners can get off the hook a little earlier. Considering it can take many years to arrive at the point where the principal is just 20% of the initial amount borrowed, it's important to know how your home has appreciated in value. After all, all of the appreciation you've acquired over time counts towards removing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Your neighborhood may not be minding the national trends and/or your home could have secured equity before things cooled off, so even when nationwide trends hint at plummeting home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Azar Appraisal Services, we're experts at analyzing value trends in Medina, Medina 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 eliminate the PMI with little trouble. At that time, the home owner can enjoy the savings from that point on.
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