Have equity in your home? Want a lower payment? An appraisal from ASAP Appraisal Group can help you get rid of your PMI.It's widely understood that a 20% down payment is common when buying a house. Considering the liability for the lender is oftentimes 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 regular value fluctuationsin the event a purchaser is unable to pay. During the recent mortgage boom of the last decade, it became widespread to see lenders commanding down payments of 10, 5 or often 0 percent. How does a lender handle the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI guards the lender if a borrower doesn't pay on the loan and the worth of the house is less than what the borrower still owes on the loan. PMI can be expensive to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and many times isn't even tax deductible. It's beneficial for the lender because they secure the money, and they get paid if the borrower doesn't pay, contradictory to a piggyback loan where the lender consumes all the costs. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can prevent paying PMIWith the implementation of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the original loan amount. The law stipulates that, at the request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. So, savvy homeowners can get off the hook a little earlier. 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 necessary to know how your home has grown in value. After all, any appreciation you've gained over time counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% threshold? Your neighborhood may not be minding the national trends and/or your home may have gained equity before things calmed down, so even when nationwide trends signify falling home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. It's an appraiser's job to understand the market dynamics of their area. At ASAP Appraisal Group, we know when property values have risen or declined. We're masters at pinpointing value trends in Lakeland, Polk County and surrounding areas. When faced with information from an appraiser, the mortgage company will often drop the PMI with little trouble. At which time, the home owner can delight in the savings from that point on.
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