John A. Pindar Appraisals can help you remove your Private Mortgage InsuranceA 20% down payment is typically the standard when purchasing a home. The lender's risk is generally only the difference between the home value and the amount outstanding on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and regular value variations on the chance that a borrower defaults. Lenders were working with down payments as low as 10, 5 and even 0 percent during the mortgage boom of the last decade. A lender is able to handle the added risk of the minimal down payment with Private Mortgage Insurance or PMI. This supplemental policy takes care of the lender in case a borrower defaults on the loan and the worth of the property is less than the balance of the loan. PMI can be pricey to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and many times isn't even tax deductible. It's advantageous for the lender because they acquire the money, and they get the money if the borrower defaults, different 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 home buyers prevent bearing the cost of PMI?The Homeowners Protection Act of 1998 forces the lenders on most loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Keen homeowners can get off the hook beforehand. The law stipulates that, upon request of the home owner, the PMI must be released when the principal amount reaches just 80 percent. Because it can take countless years to get to the point where the principal is just 20% of the initial amount borrowed, it's necessary to know how your home has increased in value. After all, all of the appreciation you've accomplished over time counts towards dismissing PMI. So why pay it after your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends indicate plunging home values, realize that real estate is local. Your neighborhood may not be adopting the national trends and/or your home could have acquired equity before things calmed down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It's an appraiser's job to understand the market dynamics of their area. At John A. Pindar Appraisals, we know when property values have risen or declined. We're masters at determining value trends in Rock Hill, Sullivan County and surrounding areas. When faced with data from an appraiser, the mortgage company will often eliminate the PMI with little effort. At that time, the home owner can retain the savings from that point on.
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