Have equity in your home? Want a lower payment? An appraisal from American Appraisal, Inc. can help you get rid of your PMI.It's widely understood that a 20% down payment is the standard when purchasing a home. The lender's risk is oftentimes only the remainder between the home value and the sum due on the loan, so the 20% adds a nice cushion against the expenses of foreclosure, reselling the home, and natural value variations on the chance that a borrower defaults. Banks were taking down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to manage the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This added policy guards the lender in the event a borrower defaults on the loan and the market price of the home is lower than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and many times isn't even tax deductible, PMI is costly to a borrower. Opposite from a piggyback loan where the lender takes in all the deficits, PMI is favorable for the lender because they acquire the money, and they receive payment if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a buyer refrain from paying PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Wise home owners can get off the hook a little early. The law guarantees that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches just 80 percent. Since it can take countless years to get to the point where the principal is only 20% of the original loan amount, it's crucial to know how your home has increased in value. After all, every bit of appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends forecast plunging home values, understand that real estate is local. Your neighborhood may not be following the national trends and/or your home might have acquired equity before things simmered down. The difficult thing for almost all homeowners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can definitely help. As appraisers, it's our job to recognize the market dynamics of our area. At American Appraisal, Inc., we know when property values have risen or declined. We're experts at identifying value trends in Bakersfield, Kern County and surrounding areas. Faced with data from an appraiser, the mortgage company will often cancel the PMI with little trouble. At that time, the home owner can enjoy the savings from that point on.
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