Have equity in your home? Want a lower payment? An appraisal from MJ Valuations, Inc can help you get rid of your PMI.It's typically understood that a 20% down payment is the standard when getting a mortgage. The lender's risk is oftentimes only the difference between the home value and the sum remaining on the loan, so the 20% supplies a nice cushion against the costs of foreclosure, selling the home again, and regular value changes in the event a purchaser is unable to pay. Banks were taking down payments down to 10, 5 and often 0 percent during the mortgage boom of the mid-2000s. A lender is able to manage the increased risk of the reduced down payment with Private Mortgage Insurance or PMI. This added policy guards the lender if a borrower defaults on the loan and the value of the home is less than the loan balance. PMI is costly to a borrower because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and often isn't even tax deductible. It's beneficial for the lender because they acquire the money, and they receive payment if the borrower is unable to pay, contradictory to a piggyback loan where the lender consumes all the losses. 
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 nearly all loans lenders are required to automatically cancel the PMI when the principal balance of the loan equals 78 percent of the primary loan amount. Acute homeowners can get off the hook ahead of time. The law designates that, upon request of the homeowner, the PMI must be released when the principal amount reaches only 80 percent. Because it can take countless years to get to the point where the principal is just 20% of the initial amount of the loan, it's crucial to know how your home has increased in value. After all, every bit of appreciation you've gained over time counts towards removing PMI. So why should you pay it after the balance of your loan has dropped below the 80% threshold? Your neighborhood may not be minding the national trends and/or your home may have acquired equity before things simmered down, so even when nationwide trends predict plummeting home values, you should realize that real estate is local. An accredited, 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's an appraiser's job to recognize the market dynamics of their area. At Michael "MJ" Carroll, we know when property values have risen or declined. We're masters at analyzing value trends in the Front Range and High Country. Faced with figures from an appraiser, the mortgage company will usually eliminate the PMI with little anxiety. At which time, the homeowner can relish the savings from that point on.
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