Have equity in your home? Want a lower payment? An appraisal from Infinity Appraisal Services can help you get rid of your PMI.It's typically inferred that a 20% down payment is accepted when purchasing a home. Since the risk for the lender is generally only the difference between the home value and the amount due on the loan, the 20% supplies a nice cushion against the charges of foreclosure, reselling the home, and typical value fluctuationson the chance that a borrower doesn't pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders commanding down payments of 10, 5 or even 0 percent. A lender is able to manage the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower doesn't pay on the loan and the market price of the property is lower than the loan balance. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and frequently isn't even tax deductible. Opposite from a piggyback loan where the lender consumes all the losses, PMI is beneficial for the lender because they acquire the money, and they get paid 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 home owners refrain from paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law promises that, upon request of the home owner, the PMI must be abandoned when the principal amount equals only 80 percent. So, smart homeowners can get off the hook a little earlier. Since it can take many years to arrive at the point where the principal is only 20% of the initial loan amount, it's important to know how your home has appreciated in value. After all, all of the appreciation you've accomplished over time counts towards removing PMI. So why pay it after the balance of your loan has dropped below the 80% threshold? Despite the fact that nationwide trends predict falling home values, be aware that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home might have secured equity before things settled down. The hardest thing for many home owners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can surely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Infinity Appraisal Services, we're experts at recognizing value trends in Lakewood, Pierce County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will often do away with the PMI with little trouble. At that time, the homeowner can relish the savings from that point on.
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