Have equity in your home? Want a lower payment? An appraisal from Excel-erated Appraisals, LLC can help you get rid of your PMI.It's typically inferred that a 20% down payment is the standard when getting a mortgage. The lender's risk is generally only the remainder between the home value and the amount outstanding on the loan, so the 20% supplies a nice buffer against the costs of foreclosure, selling the home again, and natural value variations in the event a purchaser doesn't pay. The market was taking down payments as low as 10, 5 and often 0 percent during the mortgage boom of the last decade. A lender is able to manage the additional risk of the minimal down payment with Private Mortgage Insurance or PMI. PMI takes care of the lender in the event a borrower is unable to pay on the loan and the market price of the house is less than what the borrower still owes on the loan. PMI can be expensive to a borrower because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible. It's beneficial for the lender because they collect the money, and they receive payment if the borrower is unable to 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 home buyers can prevent bearing the cost of PMIWith the employment of The Homeowners Protection Act of 1998, on nearly all loans lenders are forced to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law stipulates that, at the request of the home owner, the PMI must be abandoned when the principal amount reaches only 80 percent. So, wise homeowners can get off the hook ahead of time. It can take countless years to reach the point where the principal is only 20% of the original loan amount, so it's crucial to know how your home has grown in value. After all, all of the appreciation you've obtained over time counts towards dismissing PMI. So why should you pay it after the balance of your loan has dropped below the 80% mark? Even when nationwide trends forecast decreasing home values, understand that real estate is local. Your neighborhood might not be adopting the national trends and/or your home may have acquired equity before things settled down. A certified, licensed real estate appraiser can help home owners understand just when their home's equity rises above the 20% point, as it's a tough thing to know. As appraisers, it's our job to recognize the market dynamics of our area. At Excel-erated Appraisals, LLC, we're masters at pinpointing value trends in Fort Myers, Lee County and surrounding areas, and we know when property values have risen or declined. Faced with data from an appraiser, the mortgage company will generally cancel the PMI with little effort. At which time, the homeowner can relish the savings from that point on.
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