Have equity in your home? Want a lower payment? An appraisal from Hortman Appraisals, LLC. can help you get rid of your PMI.When purchasing a home, a 20% down payment is typically the standard. Since the risk for the lender is oftentimes only the difference between the home value and the sum remaining on the loan, the 20% supplies a nice buffer against the expenses of foreclosure, reselling the home, and typical value changeson the chance that a borrower is unable to pay. Lenders were accepting down payments down to 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to manage the increased risk of the minimal 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 value of the home is less than what is owed on the loan. PMI is pricey to a borrower on the grounds that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and often isn't even tax deductible. It's profitable for the lender because they collect the money, and they receive payment if the borrower is unable to pay, separate from a piggyback loan where the lender absorbs all the deficits. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homeowners prevent paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Wise homeowners can get off the hook ahead of time. The law stipulates that, at the request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. It can take many years to reach the point where the principal is only 20% of the initial loan amount, so it's necessary to know how your home has grown in value. After all, all of the appreciation you've accomplished over time counts towards abolishing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% threshold? Even when nationwide trends forecast falling home values, realize that real estate is local. Your neighborhood might not be minding the national trends and/or your home could have secured equity before things cooled off. 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 know the market dynamics of our area. At Hortman Appraisals, LLC. , we know when property values have risen or declined. We're masters at identifying value trends in Warner Robins, Houston County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often do away with the PMI with little effort. At that time, the homeowner can enjoy the savings from that point on.
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