Have equity in your home? Want a lower payment? An appraisal from Florida Property Research & Appraisal can help you get rid of your PMI.It's generally understood that a 20% down payment is accepted when purchasing a home. The lender's risk is usually only the difference between the home value and the sum due on the loan, so the 20% supplies a nice buffer against the expenses of foreclosure, selling the home again, and typical value variations in the event a purchaser is unable to pay. During the recent mortgage upturn of the last decade, it was customary to see lenders commanding down payments of 10, 5 or sometimes 0 percent. How does a lender endure the increased 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 value of the house is lower than the loan balance. Because 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 pricey to a borrower. Separate from a piggyback loan where the lender takes in all the damages, PMI is beneficial for the lender because they obtain the money, and they get the money 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 avoid paying PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law designates that, upon request of the home owner, the PMI must be dropped when the principal amount reaches only 80 percent. So, keen homeowners can get off the hook sooner than expected. It can take many years to reach the point where the principal is only 20% of the initial amount of the loan, so it's essential to know how your home has grown in value. After all, every bit of appreciation you've gained over time counts towards removing PMI. So what's the reason for paying 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 could have acquired equity before things cooled off, so even when nationwide trends signify declining home values, you should understand that real estate is local. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity goes over the 20% point, as it's a difficult thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Florida Property Research & Appraisal, we know when property values have risen or declined. We're experts at determining value trends in Tallahassee, Leon County and surrounding areas. Faced with data from an appraiser, the mortgage company will usually cancel the PMI with little anxiety. At that time, the homeowner can enjoy the savings from that point on.
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