Have equity in your home? Want a lower payment? An appraisal from TSL Appraisals can help you get rid of your PMI.When buying a house, a 20% down payment is usually the standard. Since the liability for the lender is generally only the difference between the home value and the amount remaining on the loan, the 20% provides a nice buffer against the expenses of foreclosure, reselling the home, and natural value changesin the event a purchaser doesn't pay. The market was accepting down payments as low as 10, 5 and often 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the increased risk of the low down payment with Private Mortgage Insurance or PMI. This supplemental plan takes care of the lender in the event a borrower doesn't pay on the loan and the value of the home is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be costly to a borrower. It's profitable for the lender because they secure the money, and they get paid if the borrower defaults, opposite from a piggyback loan where the lender consumes all the losses. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homebuyers refrain from paying PMI?With the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are required to automatically eliminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law states that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, smart home owners can get off the hook a little early. Because it can take countless years to get to the point where the principal is just 20% of the original amount of the loan, it's important to know how your home has increased in value. After all, every bit of appreciation you've obtained over time counts towards abolishing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be reflecting the national trends and/or your home might have acquired equity before things simmered down, so even when nationwide trends forecast plummeting home values, you should understand that real estate is local. The hardest thing for most homeowners to understand is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can surely help. It is an appraiser's job to understand the market dynamics of their area. At TSL Appraisals, we know when property values have risen or declined. We're masters at pinpointing value trends in Lewis Center, Delaware County and surrounding areas. When faced with data from an appraiser, the mortgage company will generally drop the PMI with little trouble. At that time, the homeowner can relish the savings from that point on.
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