Have equity in your home? Want a lower payment? An appraisal from Collin Gray Appraisal Company can help you get rid of your PMI.It's widely known that a 20% down payment is accepted when getting a mortgage. The lender's risk is often only the remainder between the home value and the amount due on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and natural value changes on the chance that a borrower doesn't pay. During the recent mortgage boom of the mid 2000s, it became widespread to see lenders requiring down payments of 10, 5 or sometimes 0 percent. A lender is able to handle the additional risk of the low down payment with Private Mortgage Insurance or PMI. PMI guards the lender in case a borrower is unable to pay on the loan and the value of the home is less than what the borrower still owes on the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and often isn't even tax deductible, PMI can be expensive to a borrower. Opposite from a piggyback loan where the lender takes in all the costs, PMI is profitable for the lender because they collect the money, and they receive payment if the borrower doesn't pay. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can a home owner refrain from bearing the cost of PMI?With the utilization of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law promises that, upon request of the home owner, the PMI must be released when the principal amount equals only 80 percent. So, acute homeowners can get off the hook sooner than expected. It can take many years to get to the point where the principal is only 20% of the initial amount of the loan, so it's crucial to know how your home has grown in value. After all, any appreciation you've gained over the years 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 signify decreasing home values, realize that real estate is local. Your neighborhood might not be adopting the national trends and/or your home may have acquired equity before things simmered down. An accredited, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a hard thing to know. As appraisers, it's our job to keep up with the market dynamics of our area. At Collin Gray Appraisal Company, we know when property values have risen or declined. We're experts at identifying value trends in Kerrville, Kerr County and surrounding areas. Faced with data from an appraiser, the mortgage company will generally do away with the PMI with little anxiety. At which time, the home owner can enjoy the savings from that point on.
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