Have equity in your home? Want a lower payment? An appraisal from Corrie Appraisal & Consulting, Inc. can help you get rid of your PMI.When getting a mortgage, a 20% down payment is typically the standard. The lender's liability is generally only the difference between the home value and the amount outstanding on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and typical value variations on the chance that a purchaser doesn't pay. During the recent mortgage upturn of the last decade, it was common to see lenders taking down payments of 10, 5 or even 0 percent. How does a lender handle the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. PMI protects the lender if a borrower defaults on the loan and the worth of the property is lower than what is owed on the loan. PMI can be pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and often isn't even tax deductible. It's money-making for the lender because they collect the money, and they get paid if the borrower is unable to pay, unlike a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home owner avoid bearing the expense of PMI?The Homeowners Protection Act of 1998 obligates the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the beginning loan amount. Keen homeowners can get off the hook a little early. The law designates that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. Since it can take countless years to get to the point where the principal is just 20% of the initial amount borrowed, it's crucial to know how your home has grown 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 might not be reflecting the national trends and/or your home could have acquired equity before things calmed down, so even when nationwide trends forecast plunging home values, you should realize that real estate is local. The toughest thing for many home owners to understand is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can definitely help. It's an appraiser's job to understand the market dynamics of their area. At Corrie Appraisal & Consulting, Inc., we know when property values have risen or declined. We're experts at pinpointing value trends in Charleston, Coles County and surrounding areas. When faced with data from an appraiser, the mortgage company will often cancel the PMI with little trouble. At which time, the home owner can retain the savings from that point on.
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