Have equity in your home? Want a lower payment? An appraisal from Treasure Coast Appraisals can help you get rid of your PMI.A 20% down payment is usually accepted when purchasing a home. Since the liability for the lender is often only the remainder between the home value and the sum outstanding on the loan, the 20% supplies a nice buffer against the costs of foreclosure, reselling the home, and regular value changesin the event a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders requiring down payments of 10, 5 or even 0 percent. How does a lender handle the added risk of the small down payment? The solution is Private Mortgage Insurance or PMI. This added policy covers the lender if a borrower is unable to pay on the loan and the value of the property is less than the loan balance. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible. Unlike a piggyback loan where the lender absorbs all the deficits, PMI is beneficial for the lender because they obtain 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 homebuyers can refrain from bearing the expense of PMIWith the employment of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Keen home owners can get off the hook ahead of time. The law stipulates that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. Because it can take many years to get to the point where the principal is just 20% of the original amount borrowed, it's crucial to know how your home has appreciated in value. After all, every bit of appreciation you've achieved over the years counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% mark? Despite the fact that nationwide trends forecast decreasing home values, be aware that real estate is local. Your neighborhood might not be adopting the national trends and/or your home could have acquired equity before things cooled off. The toughest thing for most homeowners to understand 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 know the market dynamics of our area. At Treasure Coast Appraisals, we know when property values have risen or declined. We're experts at determining value trends in Port St Lucie, Saint Lucie County and surrounding areas. Faced with data from an appraiser, the mortgage company will usually cancel the PMI with little anxiety. At that time, the homeowner can relish the savings from that point on.
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