Have equity in your home? Want a lower payment? An appraisal from McCarthy Real Estate, Inc., Appraisal Services can help you get rid of your PMI.It's generally inferred that a 20% down payment is the standard when purchasing a home. Because the liability for the lender is generally only the difference between the home value and the amount remaining on the loan, the 20% supplies a nice cushion against the charges of foreclosure, reselling the home, and natural value variationson the chance that a purchaser defaults. During the recent mortgage boom of the last decade, it was customary to see lenders commanding down payments of 10, 5 or even 0 percent. How does a lender handle the increased risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This additional plan guards the lender in case a borrower doesn't pay on the loan and the value of the house is lower than the loan balance. PMI can be costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and generally isn't even tax deductible. It's favorable for the lender because they secure the money, and they get the money if the borrower is unable to pay, unlike a piggyback loan where the lender consumes all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homeowners avoid bearing the cost of PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Acute homeowners can get off the hook beforehand. The law states that, upon request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the initial loan amount, so it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've gained over the years counts towards removing PMI. So why pay it after your loan balance has fallen below the 80% mark? Your neighborhood might not be adopting the national trends and/or your home could have secured equity before things calmed down, so even when nationwide trends hint at plunging home values, you should understand that real estate is local. The hardest thing for most homeowners to know is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can certainly help. It is an appraiser's job to recognize the market dynamics of their area. At McCarthy Real Estate, Inc., Appraisal Services, we know when property values have risen or declined. We're experts at analyzing value trends in Marietta, Washington County and surrounding areas. Faced with data from an appraiser, the mortgage company will generally eliminate the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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