Have equity in your home? Want a lower payment? An appraisal from WT Residential Appraisal, LLC can help you get rid of your PMI.A 20% down payment is usually the standard when getting a mortgage. Since the risk for the lender is generally only the remainder between the home value and the sum outstanding on the loan, the 20% adds a nice buffer against the charges of foreclosure, selling the home again, and regular value changeson the chance that a purchaser is unable to pay. Lenders were taking down payments down to 10, 5 and even 0 percent in the peak of last decade's mortgage boom. How does a lender handle the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower defaults on the loan and the market price of the property is less than the loan balance. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and generally isn't even tax deductible, PMI can be pricey to a borrower. Different from a piggyback loan where the lender consumes all the deficits, PMI is money-making for the lender because they obtain the money, and they receive payment if the borrower defaults. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How homebuyers can prevent paying PMIThe Homeowners Protection Act of 1998 forces the lenders on most loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. Smart homeowners can get off the hook a little earlier. The law states that, upon request of the homeowner, the PMI must be abandoned when the principal amount reaches just 80 percent. It can take many years to get to the point where the principal is just 20% of the initial loan amount, so it's crucial to know how your home has grown 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 fallen below the 80% threshold? Despite the fact that nationwide trends indicate plunging home values, realize that real estate is local. Your neighborhood might not be adopting the national trends and/or your home might have secured equity before things calmed down. The hardest thing for almost all homeowners to understand 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 keep up with the market dynamics of their area. At WT Residential Appraisal, LLC, we know when property values have risen or declined. We're masters at pinpointing value trends in Mansfield, Lane County and surrounding areas. Faced with information from an appraiser, the mortgage company will usually remove the PMI with little trouble. At which time, the home owner can enjoy the savings from that point on.
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