Let Accurate Valuation LLC help you discover if you can get rid of your PMIWhen getting a mortgage, a 20% down payment is typically the standard. The lender's risk is often only the remainder 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 natural value variations in the event a borrower is unable to pay. During the recent mortgage boom of the mid 2000s, it became common to see lenders taking down payments of 10, 5 or often 0 percent. How does a lender manage the added risk of the low down payment? The solution is Private Mortgage Insurance or PMI. PMI guards the lender in the event a borrower defaults on the loan and the worth of the home is lower than the balance of the loan. Because the $40-$50 a month per $100,000 borrowed is bundled into the mortgage monthly payment and oftentimes isn't even tax deductible, PMI can be expensive to a borrower. Unlike a piggyback loan where the lender absorbs all the costs, PMI is advantageous for the lender because they secure 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 homeowners keep from bearing the expense of PMI?With the employment of The Homeowners Protection Act of 1998, on most loans lenders are required to automatically cease the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. Savvy home owners can get off the hook a little early. The law pledges that, at the request of the homeowner, the PMI must be released when the principal amount reaches just 80 percent. Considering it can take countless years to arrive at the point where the principal is just 20% of the initial amount of the loan, it's important to know how your home has grown in value. After all, all of the appreciation you've accomplished over time counts towards abolishing PMI. So what's the reason for paying it after the balance of your loan has dropped below the 80% mark? Despite the fact that nationwide trends forecast plunging home values, realize that real estate is local. Your neighborhood might not be reflecting the national trends and/or your home could have secured equity before things cooled off. The difficult thing for most homeowners to know is just when their home's equity rises above the 20% point. A certified, licensed real estate appraiser can surely help. It's an appraiser's job to understand the market dynamics of their area. At Accurate Valuation LLC, we know when property values have risen or declined. We're masters at analyzing value trends in Wellington, Larimer County and surrounding areas. When faced with information from an appraiser, the mortgage company will often eliminate the PMI with little effort. At which time, the home owner can enjoy the savings from that point on.
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