Have equity in your home? Want a lower payment? An appraisal from Appraisal Alliance Group, LLC (321) 313-7100 can help you get rid of your PMI.When buying a house, a 20% down payment is usually the standard. Since the risk for the lender is generally only the difference between the home value and the sum outstanding on the loan, the 20% provides a nice buffer against the charges of foreclosure, reselling the home, and regular value changesin the event a purchaser defaults. During the recent mortgage upturn of the last decade, it became customary to see lenders commanding down payments of 10, 5 or even 0 percent. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added plan covers the lender if a borrower defaults on the loan and the value of the home is lower than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and frequently isn't even tax deductible, PMI can be costly to a borrower. It's advantageous for the lender because they obtain the money, and they get the money if the borrower defaults, unlike a piggyback loan where the lender takes in 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 home owners refrain 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 reaches 78 percent of the original loan amount. Savvy homeowners can get off the hook sooner than expected. The law pledges that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent. Considering it can take countless years to reach the point where the principal is only 20% of the initial amount borrowed, it's important to know how your home has grown in value. After all, every bit of appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Even when nationwide trends signify decreasing home values, understand that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home may have secured equity before things cooled off. The toughest thing for almost all homeowners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can certainly help. It is an appraiser's job to keep up with the market dynamics of their area. At Appraisal Alliance Group, LLC (321) 313-7100, we're experts at recognizing value trends in Cape Canaveral, Brevard County and surrounding areas, and we know when property values have risen or declined. Faced with information from an appraiser, the mortgage company will generally cancel the PMI with little anxiety. At that time, the homeowner can delight in the savings from that point on.
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