Have equity in your home? Want a lower payment? An appraisal from Joy Newton can help you get rid of your PMI.A 20% down payment is usually the standard when buying a house. The lender's liability is often only the remainder between the home value and the sum due on the loan, so the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and regular value variations in the event a borrower is unable to pay. Banks 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 endure the added risk of the low down payment with Private Mortgage Insurance or PMI. PMI protects the lender in case a borrower defaults on the loan and the market price of the house is less than what the borrower still owes on the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and oftentimes isn't even tax deductible, PMI is costly to a borrower. Separate from a piggyback loan where the lender takes in all the damages, PMI is favorable for the lender because they secure 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 can a home owner prevent bearing the expense of PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the original loan amount. The law states that, upon request of the homeowner, the PMI must be dropped when the principal amount reaches only 80 percent. So, acute homeowners can get off the hook ahead of time. It can take many years to arrive at the point where the principal is just 20% of the original amount of the loan, so it's essential to know how your home has appreciated in value. After all, any appreciation you've gained over time counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Despite the fact that nationwide trends signify plunging home values, be aware that real estate is local. Your neighborhood might not be adhering to the national trends and/or your home may have gained 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 difficult thing to know. It is an appraiser's job to recognize the market dynamics of their area. At Joy Newton, we're experts at pinpointing value trends in Denmark, Brown County and surrounding areas, and we know when property values have risen or declined. When faced with information from an appraiser, the mortgage company will usually remove the PMI with little trouble. At which time, the homeowner can enjoy the savings from that point on.
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