Have equity in your home? Want a lower payment? An appraisal from Versatile Real Estate Services, Inc. (678) 760-5230 can help you get rid of your PMI.A 20% down payment is usually accepted when purchasing a home. The lender's liability is oftentimes only the remainder between the home value and the sum due on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and natural value fluctuations on the chance that a borrower is unable to pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders commanding down payments of 10, 5 or sometimes 0 percent. How does a lender endure the added risk of the small down payment? The answer is Private Mortgage Insurance or PMI. This added policy covers the lender in case a borrower defaults on the loan and the worth of the home is lower than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is compiled into the mortgage payment and many times isn't even tax deductible, PMI can be costly to a borrower. Different from a piggyback loan where the lender takes in all the deficits, PMI is lucrative for the lender because they obtain 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 a home owner refrain from bearing the cost of PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Wise homeowners can get off the hook a little early. The law states that, upon request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. Considering it can take many years to arrive at the point where the principal is only 20% of the initial loan amount, it's necessary to know how your home has increased in value. After all, every bit of appreciation you've accomplished over the years counts towards abolishing PMI. So why should you pay it after the balance of your loan has fallen below the 80% threshold? Even when nationwide trends hint at declining home values, understand that real estate is local. Your neighborhood may not be adopting the national trends and/or your home could have gained equity before things simmered down. The difficult thing for almost all home owners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can definitely help. As appraisers, it's our job to recognize the market dynamics of our area. At Versatile Real Estate Services, Inc. (678) 760-5230, we know when property values have risen or declined. We're masters at determining value trends in Buford, Gwinnett County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often cancel the PMI with little effort. At which time, the homeowner can relish the savings from that point on.
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