Williams Appraisal and Realty Services, LLC can help you remove your Private Mortgage InsuranceWhen purchasing a home, a 20% down payment is usually the standard. The lender's liability is generally only the remainder between the home value and the amount due on the loan, so the 20% provides a nice cushion against the costs of foreclosure, selling the home again, and natural value changes in the event a borrower is unable to pay. Banks were taking down payments down to 10, 5 and even 0 percent during the mortgage boom of the mid 2000s. A lender is able to handle the increased risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower is unable to pay on the loan and the worth of the house is less than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is lumped into the mortgage payment and many times isn't even tax deductible, PMI is pricey to a borrower. It's money-making for the lender because they acquire the money, and they receive payment if the borrower doesn't pay, different from a piggyback loan where the lender takes in all the damages. 
Does your monthly mortgage payment include PMI? Contact us, you may be able to save money by removing your PMI. How can homebuyers avoid paying PMI?The Homeowners Protection Act of 1998 requires the lenders on most loans to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the initial loan amount. Acute home owners can get off the hook a little early. The law designates that, upon request of the home owner, the PMI must be dropped when the principal amount equals only 80 percent. Since it can take countless years to reach the point where the principal is just 20% of the initial amount of the loan, it's essential to know how your home has appreciated in value. After all, any appreciation you've acquired over time counts towards removing PMI. So why should you pay it after your loan balance has fallen below the 80% threshold? Your neighborhood may not be reflecting the national trends and/or your home could have secured equity before things calmed down, so even when nationwide trends hint at declining home values, you should realize that real estate is local. The difficult thing for most home owners to know is just when their home's equity goes over the 20% point. An accredited, licensed real estate appraiser can definitely help. It's an appraiser's job to keep up with the market dynamics of their area. At Williams Appraisal and Realty Services, LLC, we know when property values have risen or declined. We're experts at determining value trends in Charleston, Charleston County and surrounding areas. When faced with data from an appraiser, the mortgage company will generally drop the PMI with little trouble. At that time, the homeowner can delight in the savings from that point on.
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