Have equity in your home? Want a lower payment? An appraisal from Stacey L Shanks can help you get rid of your PMI.When purchasing a home, a 20% down payment is typically the standard. The lender's liability is generally only the difference between the home value and the amount outstanding on the loan, so the 20% adds a nice buffer against the charges of foreclosure, reselling the home, and regular value changes on the chance that a purchaser doesn't pay. During the recent mortgage boom of the last decade, it was customary to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to manage the additional risk of the small down payment with Private Mortgage Insurance or PMI. This added plan guards the lender in the event a borrower doesn't pay on the loan and the worth of the property is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and many times isn't even tax deductible, PMI can be pricey to a borrower. It's beneficial for the lender because they acquire the money, and they receive payment if the borrower doesn't pay, opposite 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 can a homebuyer refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Smart home owners can get off the hook beforehand. The law guarantees that, upon request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. Considering it can take countless years to arrive at the point where the principal is just 20% of the original amount of the loan, it's important to know how your home has increased in value. After all, every bit of appreciation you've achieved over the years counts towards abolishing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood may not be reflecting the national trends and/or your home might have secured equity before things simmered down, so even when nationwide trends hint at declining home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a hard thing to know. It is an appraiser's job to understand the market dynamics of their area. At Stacey L Shanks, we're experts at identifying value trends in Deepwater, Henry 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 usually do away with the PMI with little trouble. At that time, the homeowner can delight in the savings from that point on.
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