Let A & S Appraisal Services, Inc. help you determine if you can get rid of your PMIA 20% down payment is typically accepted when purchasing a home. Since the liability for the lender is usually only the remainder between the home value and the amount outstanding on the loan, the 20% provides a nice cushion against the charges of foreclosure, reselling the home, and typical value changesin the event a purchaser doesn't pay. Banks were accepting down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to handle the increased risk of the low down payment with Private Mortgage Insurance or PMI. PMI covers the lender in case a borrower doesn't pay on the loan and the market price of the house 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 generally isn't even tax deductible, PMI can be costly to a borrower. It's favorable for the lender because they obtain the money, and they get the money if the borrower defaults, opposite from a piggyback loan where the lender takes in all the damages. 
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?With the utilization of The Homeowners Protection Act of 1998, on most loans lenders are obligated to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Savvy home owners can get off the hook a little earlier. The law pledges that, at the request of the homeowner, the PMI must be dropped when the principal amount reaches just 80 percent. Because it can take countless years to arrive at the point where the principal is only 20% of the initial amount borrowed, it's necessary to know how your home has grown in value. After all, any appreciation you've achieved over the years counts towards dismissing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? Your neighborhood may not be heeding the national trends and/or your home might have gained equity before things settled down, so even when nationwide trends indicate plummeting home values, you should realize that real estate is local. The toughest thing for almost all home owners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. It is an appraiser's job to understand the market dynamics of their area. At A & S Appraisal Services, Inc., we're masters at pinpointing value trends in Fort White, Columbia County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will generally drop the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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