Have equity in your home? Want a lower payment? An appraisal from Appraise It and Real Estate Ninja can help you get rid of your PMI.It's widely inferred that a 20% down payment is common when buying a house. Since the liability for the lender is usually 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 regular value changeson the chance that a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to manage the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This added policy protects the lender in the event a borrower defaults on the loan and the value of the home is less than what is owed on the loan. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and often isn't even tax deductible. Separate from a piggyback loan where the lender takes in all the damages, PMI is advantageous for the lender because they acquire the money, and they receive payment if the borrower is unable to pay. 
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 keep from paying PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law pledges that, at the request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. So, wise home owners can get off the hook a little early. Since it can take countless years to get to the point where the principal is only 20% of the initial loan amount, it's crucial to know how your home has increased in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So what's the reason for paying it after the balance of your loan has fallen below the 80% mark? Your neighborhood might not be heeding the national trends and/or your home could have secured equity before things simmered down, so even when nationwide trends forecast declining home values, you should realize that real estate is local. The toughest thing for many homeowners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can certainly help. As appraisers, it's our job to keep up with the market dynamics of our area. At Appraise It and Real Estate Ninja, we know when property values have risen or declined. We're experts at analyzing value trends in Fort Wayne, Allen County and surrounding areas. When faced with information from an appraiser, the mortgage company will most often cancel the PMI with little trouble. At that time, the homeowner can enjoy the savings from that point on.
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