Let Accurate Valuation LLC help you discover if you can get rid of your PMIIt's generally understood that a 20% down payment is accepted when getting a mortgage. Because the liability for the lender is generally only the remainder between the home value and the sum outstanding on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and natural value changesin the event a borrower defaults. During the recent mortgage upturn of the mid 2000s, it was widespread to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender endure the additional risk of the small down payment? The answer is Private Mortgage Insurance or PMI. PMI takes care of the lender if a borrower is unable to pay on the loan and the value of the home is lower than what the borrower still owes on the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible, PMI is costly to a borrower. Separate from a piggyback loan where the lender absorbs all the deficits, PMI is beneficial for the lender because they obtain the money, and they get the money 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 homebuyers can refrain from bearing the expense of PMIWith the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically stop the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Smart homeowners can get off the hook ahead of time. The law pledges that, at the request of the home owner, the PMI must be released when the principal amount equals only 80 percent. It can take countless years to arrive at the point where the principal is only 20% of the initial amount borrowed, so it's crucial to know how your home has appreciated in value. After all, every bit of appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Your neighborhood might not be heeding the national trends and/or your home may have acquired equity before things calmed down, so even when nationwide trends predict decreasing home values, you should realize that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. As appraisers, it's our job to understand the market dynamics of our area. At Accurate Valuation LLC, we know when property values have risen or declined. We're masters at determining value trends in Wellington, Larimer County and surrounding areas. When faced with data from an appraiser, the mortgage company will often cancel the PMI with little trouble. At that time, the home owner can enjoy the savings from that point on.
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