Have equity in your home? Want a lower payment? An appraisal from Atlas Appraisal Service LTD 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 usually only the difference between the home value and the amount outstanding on the loan, the 20% supplies a nice buffer against the charges of foreclosure, reselling the home, and typical value variationsin the event a borrower is unable to pay. During the recent mortgage upturn of the mid 2000s, it was customary to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender manage the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI guards the lender in case a borrower doesn't pay on the loan and the market price 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 compiled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI is pricey to a borrower. It's favorable for the lender because they acquire the money, and they get paid if the borrower defaults, different from a piggyback loan where the lender consumes all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How home owners can keep from bearing the expense of PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically terminate the PMI when the principal balance of the loan reaches 78 percent of the beginning loan amount. The law stipulates that, at the request of the home owner, the PMI must be released when the principal amount equals just 80 percent. So, keen homeowners can get off the hook a little earlier. It can take countless years to reach the point where the principal is just 20% of the initial loan amount, so it's essential to know how your home has appreciated 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 the balance of your loan has fallen below the 80% mark? Your neighborhood may not be following the national trends and/or your home might have acquired equity before things settled down, so even when nationwide trends predict declining home values, you should understand that real estate is local. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity goes over the 20% point, as it's a tough thing to know. It is an appraiser's job to understand the market dynamics of their area. At Atlas Appraisal Service LTD, we're masters at recognizing value trends in Bourbonnais, Kankakee County and surrounding areas, and we know when property values have risen or declined. 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 enjoy the savings from that point on.
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