Let Nordquist Appraisal LLC help you figure out if you can get rid of your PMIA 20% down payment is usually accepted when buying a house. Considering the liability for the lender is often only the difference between the home value and the sum due on the loan, the 20% provides a nice buffer against the costs of foreclosure, selling the home again, and natural value variationsin the event a purchaser doesn't pay. Lenders were working with down payments down to 10, 5 and often 0 percent in the peak of last decade's mortgage boom. How does a lender manage the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI takes care of the lender if a borrower is unable to pay on the loan and the worth of the house is less than what the borrower still owes on the loan. PMI can be expensive to a borrower in that the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and generally isn't even tax deductible. It's money-making for the lender because they obtain the money, and they get paid if the borrower doesn't pay, separate from a piggyback loan where the lender takes in 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 buyer refrain from paying PMI?With the implementation of The Homeowners Protection Act of 1998, on most loans lenders are forced to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law stipulates that, upon request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. So, wise homeowners can get off the hook a little early. Because it can take countless years to get to the point where the principal is only 20% of the original amount borrowed, 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 abolishing PMI. So why pay it after your loan balance has dropped below the 80% mark? Even when nationwide trends indicate decreasing home values, realize that real estate is local. Your neighborhood may not be following the national trends and/or your home might have acquired equity before things settled down. The toughest thing for almost all homeowners to know 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 understand the market dynamics of our area. At Nordquist Appraisal LLC, we're experts at determining value trends in Pittsburgh, Allegheny County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will often remove the PMI with little effort. At which time, the homeowner can relish the savings from that point on.
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Paying PMI?
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