Let Ultimate Georgia Appraisal, LLC help you discover if you can get rid of your PMIA 20% down payment is typically accepted when getting a mortgage. The lender's liability is usually only the difference between the home value and the amount due on the loan, so the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and typical value variations on the chance that a borrower defaults. The market was accepting down payments down to 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. A lender is able to handle the added risk of the small down payment with Private Mortgage Insurance or PMI. This added policy guards the lender in case a borrower is unable to pay on the loan and the value of the property is lower than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and frequently isn't even tax deductible, PMI is costly to a borrower. Separate from a piggyback loan where the lender absorbs all the costs, PMI is lucrative for the lender because they acquire the money, and they get paid if the borrower is unable to pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can buyers avoid bearing the cost of PMI?With the implementation of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Savvy home owners can get off the hook sooner than expected. The law states that, at the request of the homeowner, the PMI must be released when the principal amount equals only 80 percent. It can take many years to arrive at the point where the principal is just 20% of the original amount borrowed, so it's important to know how your home has increased in value. After all, every bit of appreciation you've gained over time counts towards abolishing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Despite the fact that nationwide trends hint at declining home values, understand that real estate is local. Your neighborhood might not be following the national trends and/or your home could have secured equity before things simmered down. 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 hard thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Ultimate Georgia Appraisal, LLC, we're experts at identifying value trends in Brooklet, Bulloch County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will usually drop the PMI with little trouble. At which time, the home owner can relish the savings from that point on.
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