Have equity in your home? Want a lower payment? An appraisal from Crescent Appraisal Group, Inc. can help you get rid of your PMI.It's widely understood that a 20% down payment is common when getting a mortgage. Considering the risk for the lender is oftentimes only the remainder between the home value and the sum remaining on the loan, the 20% supplies a nice cushion against the expenses of foreclosure, selling the home again, and typical value changeson the chance that a borrower is unable to pay. During the recent mortgage upturn of the last decade, it became widespread to see lenders taking down payments of 10, 5 or even 0 percent. How does a lender endure the increased risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This supplemental plan covers the lender in case a borrower is unable to pay on the loan and the market price of the house is less 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 pricey to a borrower. Contradictory to a piggyback loan where the lender consumes all the damages, PMI is beneficial for the lender because they collect the money, and they get paid 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 home owners can keep from bearing the expense of PMIWith the employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Smart homeowners can get off the hook a little earlier. The law states that, at the request of the home owner, the PMI must be released when the principal amount equals just 80 percent. It can take countless years to reach the point where the principal is just 20% of the initial amount of the loan, so it's necessary to know how your home has appreciated in value. After all, any appreciation you've acquired over time counts towards abolishing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be adhering to the national trends and/or your home might have gained equity before things simmered down, so even when nationwide trends predict plunging 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 tough thing to know. It's an appraiser's job to understand the market dynamics of their area. At Crescent Appraisal Group, Inc., we know when property values have risen or declined. We're experts at identifying value trends in Metairie, Jefferson County and surrounding areas. When faced with figures from an appraiser, the mortgage company will usually do away with the PMI with little anxiety. At which time, the home owner can relish the savings from that point on.
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