Have equity in your home? Want a lower payment? An appraisal from Feldman Appraisal can help you get rid of your PMI.A 20% down payment is typically the standard when purchasing a home. The lender's liability is oftentimes only the remainder between the home value and the sum remaining on the loan, so the 20% supplies a nice buffer against the costs of foreclosure, reselling the home, and natural value changes on the chance that a borrower doesn't pay. During the recent mortgage boom of the last decade, it became common to see lenders requiring down payments of 10, 5 or sometimes 0 percent. How does a lender manage the additional risk of the small down payment? The solution is Private Mortgage Insurance or PMI. PMI protects the lender if a borrower defaults on the loan and the worth of the home is lower than the balance of the loan. Since the $40-$50 a month per $100,000 borrowed is rolled into the mortgage payment and oftentimes isn't even tax deductible, PMI is pricey to a borrower. Contradictory to a piggyback loan where the lender consumes all the losses, PMI is favorable for the lender because they collect the money, and they get paid 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 keep from bearing the cost of PMI?With the employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically cancel 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 homeowner, the PMI must be released when the principal amount equals just 80 percent. So, acute homeowners can get off the hook ahead of time. It can take countless years to arrive at the point where the principal is just 20% of the initial amount of the loan, so it's essential to know how your home has appreciated in value. After all, any appreciation you've achieved over the years counts towards removing 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 hint at declining home values, understand that real estate is local. Your neighborhood may not be minding the national trends and/or your home might have acquired equity before things settled down. 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. As appraisers, it's our job to keep up with the market dynamics of our area. At Feldman Appraisal, we know when property values have risen or declined. We're experts at determining value trends in San Antonio, Bexar County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often eliminate the PMI with little effort. At that time, the homeowner can enjoy the savings from that point on.
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