Appraisal Services of Brandon, Inc . can help you remove your Private Mortgage InsuranceWhen purchasing a home, a 20% down payment is usually the standard. The lender's risk is generally only the difference between the home value and the amount due on the loan, so the 20% adds a nice cushion against the charges of foreclosure, selling the home again, and typical value variations on the chance that a purchaser is unable to pay. During the recent mortgage upturn of the last decade, it became customary to see lenders commanding down payments of 10, 5 or often 0 percent. A lender is able to handle the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This supplemental policy protects the lender if a borrower doesn't pay on the loan and the market price of the home is less than the loan balance. PMI is pricey to a borrower because the $40-$50 a month per $100,000 borrowed is compiled into the mortgage monthly payment and many times isn't even tax deductible. It's beneficial for the lender because they secure the money, and they receive payment if the borrower doesn't pay, opposite 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 a home owner prevent paying PMI?The Homeowners Protection Act of 1998 obligates the lenders on nearly all loans to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law designates that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals just 80 percent. So, keen home owners can get off the hook a little early. It can take many years to arrive at the point where the principal is just 20% of the original amount of the loan, so it's important to know how your home has appreciated in value. After all, every bit of appreciation you've achieved over the years counts towards removing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Your neighborhood might not be heeding the national trends and/or your home may have gained equity before things calmed down, so even when nationwide trends forecast plunging home values, you should realize that real estate is local. The toughest thing for most homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can certainly help. As appraisers, it's our job to recognize the market dynamics of our area. At Appraisal Services of Brandon, Inc ., we know when property values have risen or declined. We're masters at pinpointing value trends in Valrico, Hillsborough County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often drop the PMI with little effort. At which time, the home owner can retain the savings from that point on.
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