Have equity in your home? Want a lower payment? An appraisal from Golden Rule Appraisals can help you get rid of your PMI.When buying a house, a 20% down payment is typically the standard. Since the risk for the lender is generally only the difference between the home value and the sum remaining on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, reselling the home, and natural value variationson the chance that a purchaser is unable to pay. Banks were accepting down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This added policy takes care of the lender if a borrower is unable to pay on the loan and the worth of the home is less than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be costly to a borrower. Different 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 doesn't 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 prevent paying PMIWith the employment of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically eliminate the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law pledges that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent. So, savvy homeowners can get off the hook sooner than expected. Since it can take countless years to reach the point where the principal is just 20% of the original amount of the loan, it's necessary to know how your home has appreciated in value. After all, every bit of appreciation you've achieved over the years counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Your neighborhood may not be adhering to the national trends and/or your home might have secured equity before things settled down, so even when nationwide trends signify plunging home values, you should realize that real estate is local. The toughest thing for almost all homeowners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can definitely help. As appraisers, it's our job to know the market dynamics of our area. At Golden Rule Appraisals, we're masters at identifying value trends in Edmond, Oklahoma County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will most often cancel the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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