Have equity in your home? Want a lower payment? An appraisal from Keir's Appraisal Services can help you get rid of your PMI.It's widely understood that a 20% down payment is common when getting a mortgage. The lender's liability is often only the remainder between the home value and the sum remaining on the loan, so the 20% provides a nice buffer against the costs of foreclosure, reselling the home, and natural value variations on the chance that a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it became customary to see lenders requiring down payments of 10, 5 or often 0 percent. A lender is able to manage the additional risk of the small down payment with Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower defaults on the loan and the worth of the property is less than what the borrower still owes on the loan. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and frequently isn't even tax deductible. Unlike a piggyback loan where the lender takes in all the damages, PMI is beneficial for the lender because they collect the money, and they receive payment 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 homeowners can refrain from bearing the cost of PMIThe Homeowners Protection Act of 1998 requires the lenders on most loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Keen home owners can get off the hook ahead of time. The law guarantees that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. Since it can take countless years to reach the point where the principal is only 20% of the original amount borrowed, it's important to know how your home has grown in value. After all, all of the appreciation you've achieved over the years counts towards dismissing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Your neighborhood might not be adhering to the national trends and/or your home may have acquired equity before things simmered down, so even when nationwide trends predict decreasing 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 difficult thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Keir's Appraisal Services, we know when property values have risen or declined. We're experts at determining value trends in Hypoluxo, Palm Beach County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often drop the PMI with little trouble. At that time, the home owner can delight in the savings from that point on.
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