Have equity in your home? Want a lower payment? An appraisal from Glenn Bright can help you get rid of your PMI.It's largely understood that a 20% down payment is common when getting a mortgage. The lender's risk is generally only the difference between the home value and the sum due on the loan, so the 20% supplies a nice cushion against the charges of foreclosure, selling the home again, and regular value changes in the event a borrower defaults. During the recent mortgage upturn of the last decade, it became customary to see lenders taking down payments of 10, 5 or often 0 percent. How does a lender handle the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. This additional plan covers the lender in case a borrower is unable to pay on the loan and the worth of the home is lower than what is owed on the loan. PMI is pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible. Opposite from a piggyback loan where the lender takes in all the costs, PMI is profitable 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 a homebuyer prevent bearing the expense of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Smart home owners can get off the hook sooner than expected. The law designates that, upon request of the home owner, the PMI must be released when the principal amount equals only 80 percent. It can take many years to arrive at the point where the principal is only 20% of the original loan amount, so it's crucial to know how your home has increased in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be minding the national trends and/or your home could have gained equity before things calmed down, so even when nationwide trends predict falling home values, you should realize that real estate is local. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. As appraisers, it's our job to know the market dynamics of our area. At Glenn Bright, we know when property values have risen or declined. We're masters at determining value trends in Doddsville, Sunflower County and surrounding areas. When faced with data from an appraiser, the mortgage company will often remove the PMI with little trouble. At that time, the home owner can relish the savings from that point on.
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