Have equity in your home? Want a lower payment? An appraisal from Cornerstone Property Appraisal Group, LLC can help you get rid of your PMI.A 20% down payment is usually the standard when buying a house. The lender's risk is usually only the difference between the home value and the sum outstanding on the loan, so the 20% supplies a nice buffer against the costs of foreclosure, selling the home again, and typical value fluctuations in the event a purchaser defaults. During the recent mortgage boom of the last decade, it was customary to see lenders commanding down payments of 10, 5 or even 0 percent. A lender is able to endure the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in case a borrower doesn't pay on the loan and the market price of the house is lower than the loan balance. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and often isn't even tax deductible, PMI is costly to a borrower. It's money-making for the lender because they collect the money, and they receive payment if the borrower is unable to pay, different 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 homeowners can avoid paying PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are obligated to automatically stop the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. Acute home owners can get off the hook a little early. The law stipulates that, at the request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. Considering it can take many years to reach the point where the principal is just 20% of the initial loan amount, it's essential to know how your home has increased in value. After all, all of the appreciation you've gained over time counts towards abolishing PMI. So what's the reason for paying it after your loan balance has dropped below the 80% mark? Despite the fact that nationwide trends forecast decreasing home values, understand that real estate is local. Your neighborhood may not be reflecting the national trends and/or your home may have secured equity before things settled down. The toughest thing for almost all homeowners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to recognize the market dynamics of their area. At Cornerstone Property Appraisal Group, LLC, we know when property values have risen or declined. We're experts at identifying value trends in Centennial, Arapahoe County and surrounding areas. Faced with figures from an appraiser, the mortgage company will often cancel the PMI with little trouble. At which time, the homeowner can retain the savings from that point on.
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