Have equity in your home? Want a lower payment? An appraisal from Prestige Appraisal, LLC can help you get rid of your PMI.It's widely known that a 20% down payment is common when getting a mortgage. Because the liability for the lender is often only the difference between the home value and the sum due on the loan, the 20% adds a nice cushion against the expenses of foreclosure, selling the home again, and regular value variationson the chance that a purchaser doesn't pay. Lenders were working with down payments as low as 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. A lender is able to endure the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower defaults on the loan and the market price of the home is lower than the loan balance. PMI is pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and many times isn't even tax deductible. It's favorable for the lender because they obtain the money, and they get paid if the borrower is unable to pay, opposite from a piggyback loan where the lender absorbs 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 a homebuyer prevent bearing the cost of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Savvy home owners can get off the hook ahead of time. The law designates that, at the request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. Considering it can take many years to get to the point where the principal is only 20% of the initial loan amount, it's important to know how your home has grown in value. After all, all of the appreciation you've gained over the years counts towards dismissing PMI. So why should you pay it after your loan balance has dropped below the 80% mark? Even when nationwide trends indicate declining home values, understand that real estate is local. Your neighborhood might not be minding the national trends and/or your home may have gained equity before things calmed down. An accredited, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. As appraisers, it's our job to know the market dynamics of our area. At Prestige Appraisal, LLC, we're masters at analyzing value trends in Sylva, Jackson County and surrounding areas, and we know when property values have risen or declined. When faced with figures from an appraiser, the mortgage company will generally cancel the PMI with little trouble. At which time, the home owner can retain the savings from that point on.
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