Have equity in your home? Want a lower payment? An appraisal from Michigan Valuation Services, Inc can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. Considering the liability for the lender is often only the remainder between the home value and the sum due on the loan, the 20% adds a nice cushion against the costs of foreclosure, selling the home again, and typical value variationson the chance that a purchaser doesn't pay. During the recent mortgage upturn of the last decade, it was customary to see lenders taking down payments of 10, 5 or even 0 percent. How does a lender handle the additional risk of the low down payment? The solution is Private Mortgage Insurance or PMI. This supplemental plan guards the lender in the event a borrower doesn't pay on the loan and the market price of the house is lower than what the borrower still owes on the loan. Because the $40-$50 a month per $100,000 borrowed is rolled into the mortgage monthly payment and often isn't even tax deductible, PMI can be pricey to a borrower. Separate from a piggyback loan where the lender consumes all the deficits, PMI is advantageous for the lender because they obtain 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 home owners can prevent paying PMIThe Homeowners Protection Act of 1998 forces the lenders on nearly all loans to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the initial loan amount. The law states that, upon request of the homeowner, the PMI must be abandoned when the principal amount equals only 80 percent. So, smart homeowners can get off the hook a little early. Because it can take many years to arrive at the point where the principal is only 20% of the original amount borrowed, it's crucial 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 your loan balance has fallen below the 80% mark? Despite the fact that nationwide trends forecast falling home values, be aware that real estate is local. Your neighborhood may not be adhering to the national trends and/or your home could have secured equity before things settled down. The toughest thing for almost all homeowners to understand is just when their home's equity goes over the 20% point. A certified, licensed real estate appraiser can certainly help. It is an appraiser's job to understand the market dynamics of their area. At Michigan Valuation Services, Inc, we're masters at pinpointing value trends in Spring Lake, Ottawa County and surrounding areas, and we know when property values have risen or declined. When faced with data from an appraiser, the mortgage company will generally eliminate the PMI with little anxiety. At that time, the home owner can relish the savings from that point on.
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