Have equity in your home? Want a lower payment? An appraisal from Appraisal Pro Group can help you get rid of your PMI.A 20% down payment is typically accepted when purchasing a home. The lender's risk is usually only the difference between the home value and the sum outstanding on the loan, so the 20% adds a nice cushion against the charges of foreclosure, selling the home again, and natural value variations on the chance that a borrower is unable to pay. During the recent mortgage boom of the mid 2000s, it became common to see lenders taking down payments of 10, 5 or even 0 percent. A lender is able to manage the additional risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI guards the lender if a borrower is unable to pay on the loan and the worth of the house is lower than what the borrower still owes on the loan. PMI is pricey to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and often isn't even tax deductible. It's favorable for the lender because they collect the money, and they get paid 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 home owner refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Keen home owners can get off the hook a little earlier. The law pledges that, upon request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. Since it can take countless years to arrive at the point where the principal is only 20% of the original amount of the loan, it's essential to know how your home has grown in value. After all, every bit of appreciation you've gained over time counts towards removing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be adhering to the national trends and/or your home may have gained equity before things settled down, so even when nationwide trends indicate decreasing home values, you should realize that real estate is local. The difficult thing for almost all home owners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to understand the market dynamics of our area. At Appraisal Pro Group, we know when property values have risen or declined. We're experts at identifying value trends in Miami, Miami-Dade County and surrounding areas. When faced with information from an appraiser, the mortgage company will often cancel the PMI with little effort. At that time, the homeowner can retain the savings from that point on.
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