Have equity in your home? Want a lower payment? An appraisal from Tegtmeier Appraisal Services, Inc. can help you get rid of your PMI.It's typically inferred that a 20% down payment is the standard when buying a house. The lender's liability is often only the difference between the home value and the amount due on the loan, so the 20% provides a nice cushion against the expenses of foreclosure, selling the home again, and regular value variations on the chance that a purchaser is unable to pay. Banks were working with down payments as low as 10, 5 and even 0 percent in the peak of last decade's mortgage boom. A lender is able to endure the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. PMI covers the lender in the event a borrower is unable to pay on the loan and the worth of the property is less than the balance of the loan. PMI is costly to a borrower in that the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and oftentimes isn't even tax deductible. Contradictory to a piggyback loan where the lender takes in all the damages, PMI is profitable for the lender because they collect the money, and they get the money 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 buyer refrain from paying PMI?The Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. The law pledges that, upon request of the home owner, the PMI must be dropped when the principal amount reaches just 80 percent. So, savvy home owners can get off the hook a little early. Since it can take many years to reach the point where the principal is just 20% of the original amount of the loan, it's essential to know how your home has appreciated in value. After all, every bit of appreciation you've gained over the years counts towards abolishing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Your neighborhood might not be minding the national trends and/or your home might have gained equity before things settled down, so even when nationwide trends hint at falling home values, you should understand that real estate is local. The difficult thing for most home owners to know is just when their home's equity rises above the 20% point. An accredited, licensed real estate appraiser can definitely help. As appraisers, it's our job to keep up with the market dynamics of our area. At Tegtmeier Appraisal Services, Inc., we know when property values have risen or declined. We're experts at pinpointing value trends in Maineville, Warren County and surrounding areas. When faced with figures from an appraiser, the mortgage company will most often remove the PMI with little effort. At that time, the homeowner can delight in the savings from that point on.
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