Have equity in your home? Want a lower payment? An appraisal from Wade Appraisal Co can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. Because the liability for the lender is usually only the difference between the home value and the sum remaining on the loan, the 20% provides a nice cushion against the costs of foreclosure, reselling the home, and regular value fluctuationson the chance that a purchaser doesn't pay. During the recent mortgage upturn of the mid 2000s, it became common to see lenders commanding down payments of 10, 5 or often 0 percent. How does a lender endure the added risk of the low down payment? The answer is Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower is unable to pay on the loan and the worth of the home is less than what is owed on the loan. PMI can be pricey to a borrower because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and many times isn't even tax deductible. Different from a piggyback loan where the lender consumes all the costs, PMI is money-making 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 bearing the expense 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 primary loan amount. The law pledges that, upon request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. So, smart homeowners can get off the hook ahead of time. It can take countless years to get to the point where the principal is just 20% of the original loan amount, so it's crucial to know how your home has appreciated in value. After all, every bit of appreciation you've acquired over the years counts towards removing PMI. So why should you pay it after the balance of your loan has fallen below the 80% mark? Your neighborhood may not be adhering to the national trends and/or your home may have acquired equity before things settled down, so even when nationwide trends hint at decreasing home values, you should understand that real estate is local. An accredited, 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 keep up with the market dynamics of our area. At Wade Appraisal Co, we know when property values have risen or declined. We're experts at analyzing value trends in West Monroe, Ouachita County and surrounding areas. When faced with information from an appraiser, the mortgage company will most often remove the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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