Have equity in your home? Want a lower payment? An appraisal from Breer Appraisals can help you get rid of your PMI.It's largely known that a 20% down payment is accepted when buying a house. Since the liability for the lender is usually only the difference between the home value and the sum outstanding on the loan, the 20% adds a nice buffer against the expenses of foreclosure, selling the home again, and regular value variationson the chance that a purchaser doesn't pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders commanding down payments of 10, 5 or sometimes 0 percent. A lender is able to handle the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI protects the lender in the event a borrower doesn't 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 compiled into the mortgage monthly payment and many times isn't even tax deductible, PMI can be expensive to a borrower. Separate from a piggyback loan where the lender takes in all the losses, PMI is lucrative 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 buyers can avoid bearing the cost of PMIThe Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the original loan amount. Acute homeowners can get off the hook a little earlier. The law states that, upon request of the homeowner, the PMI must be released when the principal amount equals just 80 percent. Considering it can take countless years to arrive at the point where the principal is only 20% of the original amount borrowed, it's crucial to know how your home has appreciated in value. After all, any appreciation you've obtained over time counts towards removing PMI. So why pay it after your loan balance has dropped below the 80% threshold? Despite the fact that nationwide trends forecast plummeting home values, realize that real estate is local. Your neighborhood might not be adopting the national trends and/or your home could have gained equity before things simmered down. The hardest thing for many home owners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. As appraisers, it's our job to recognize the market dynamics of our area. At Breer Appraisals, we know when property values have risen or declined. We're masters at determining value trends in Lees Summit, Jackson County and surrounding areas. When faced with data from an appraiser, the mortgage company will most often drop the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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