Have equity in your home? Want a lower payment? An appraisal from Steyskal Home Appraisal LLC can help you get rid of your PMI.A 20% down payment is typically the standard when buying a house. Because the liability for the lender is often only the difference between the home value and the amount due on the loan, the 20% adds a nice buffer against the charges of foreclosure, selling the home again, and natural value changeson the chance that a purchaser doesn't pay. During the recent mortgage boom of the last decade, it was common to see lenders requiring down payments of 10, 5 or often 0 percent. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This added plan guards the lender in the event a borrower doesn't pay on the loan and the value of the property is less than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and frequently isn't even tax deductible, PMI can be expensive to a borrower. It's advantageous for the lender because they secure the money, and they receive payment if the borrower doesn't pay, different from a piggyback loan where the lender absorbs 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 prevent bearing the cost of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Savvy homeowners can get off the hook a little early. The law pledges that, upon request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. Considering it can take countless years to arrive at the point where the principal is just 20% of the initial amount borrowed, it's important to know how your home has appreciated in value. After all, every bit of appreciation you've gained over time counts towards abolishing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Your neighborhood might not be minding the national trends and/or your home might have gained equity before things simmered down, so even when nationwide trends predict plummeting home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Steyskal Home Appraisal LLC, we're experts at pinpointing value trends in , Maricopa 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 usually cancel the PMI with little effort. At which time, the home owner can delight in the savings from that point on.
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