Have equity in your home? Want a lower payment? An appraisal from Metro Appraisals can help you get rid of your PMI.It's generally understood that a 20% down payment is accepted when purchasing a home. The lender's liability is generally only the difference between the home value and the sum outstanding on the loan, so the 20% supplies a nice buffer against the expenses of foreclosure, reselling the home, and typical value changes on the chance that a purchaser defaults. The market was working with down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. How does a lender handle the added risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower defaults on the loan and the market price of the property is less 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 many times isn't even tax deductible. It's beneficial for the lender because they acquire the money, and they receive payment if the borrower defaults, separate 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 buyer avoid bearing the cost of PMI?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically stop the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. The law states that, at the request of the homeowner, the PMI must be dropped when the principal amount equals only 80 percent. So, keen home owners can get off the hook a little earlier. Considering it can take many years to reach the point where the principal is just 20% of the original amount of the loan, it's important to know how your home has grown in value. After all, all of the appreciation you've acquired over time counts towards removing PMI. So what's the reason for paying it after your loan balance has fallen below the 80% threshold? Your neighborhood may not be following the national trends and/or your home may have secured equity before things cooled off, so even when nationwide trends signify declining home values, you should realize that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over 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 Metro Appraisals, we know when property values have risen or declined. We're experts at determining value trends in Meridian, Ada County and surrounding areas. When faced with data from an appraiser, the mortgage company will most often do away with the PMI with little effort. At which time, the homeowner can delight in the savings from that point on.
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