Have equity in your home? Want a lower payment? An appraisal from Steyskal Home Appraisal LLC can help you get rid of your PMI.It's typically understood that a 20% down payment is the standard when purchasing a home. The lender's risk is often only the remainder between the home value and the sum due on the loan, so the 20% adds a nice cushion against the charges of foreclosure, reselling the home, and regular value variations in the event a purchaser is unable to pay. The market was working with down payments as low as 10, 5 and often 0 percent during the mortgage boom of the mid 2000s. A lender is able to manage the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This additional plan takes care of the lender in the event a borrower doesn't pay on the loan and the market price of the property is less than what the borrower still owes on the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and generally isn't even tax deductible. Opposite from a piggyback loan where the lender absorbs all the deficits, PMI is beneficial for the lender because they secure the money, and they receive payment if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a homebuyer refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Savvy homeowners can get off the hook sooner than expected. The law pledges that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. It can take countless years to get to the point where the principal is only 20% of the original loan amount, so it's necessary to know how your home has appreciated in value. After all, any appreciation you've gained over the years counts towards removing PMI. So why pay it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends indicate plummeting home values, realize that real estate is local. Your neighborhood might not be following the national trends and/or your home might have gained equity before things settled down. The hardest thing for most homeowners to understand 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 Steyskal Home Appraisal LLC, we know when property values have risen or declined. We're masters at recognizing value trends in , Maricopa County and surrounding areas. Faced with information from an appraiser, the mortgage company will usually drop the PMI with little effort. At which time, the home owner can retain the savings from that point on.
Want to learn more about PMI and the Homeowners Protection Act? Click this link: |