Have equity in your home? Want a lower payment? An appraisal from GZ Appraisal Services can help you get rid of your PMI.When purchasing a home, a 20% down payment is typically the standard. The lender's risk is usually only the remainder between the home value and the amount outstanding on the loan, so the 20% provides a nice buffer against the expenses of foreclosure, selling the home again, and typical value variations in the event a borrower defaults. During the recent mortgage upturn of the mid 2000s, it became common to see lenders requiring down payments of 10, 5 or even 0 percent. A lender is able to handle the increased risk of the low down payment with Private Mortgage Insurance or PMI. This added plan covers the lender in the event a borrower defaults on the loan and the market price of the house is less than the loan balance. Because the $40-$50 a month per $100,000 borrowed is lumped into the mortgage monthly payment and frequently isn't even tax deductible, PMI is costly to a borrower. It's advantageous for the lender because they secure the money, and they get the money if the borrower is unable to pay, separate from a piggyback loan where the lender consumes 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 a buyer keep from paying PMI?The Homeowners Protection Act of 1998 makes the lenders on nearly all loans to automatically cancel the PMI when the principal balance of the loan reaches 78 percent of the primary loan amount. The law pledges that, at the request of the home owner, the PMI must be released when the principal amount equals just 80 percent. So, acute homeowners can get off the hook a little early. Since it can take countless years to get to the point where the principal is just 20% of the original amount borrowed, it's crucial to know how your home has increased in value. After all, all of the appreciation you've achieved over the years counts towards dismissing PMI. So why pay it after the balance of your loan has fallen below the 80% mark? Even when nationwide trends hint at falling 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 settled down. A certified, licensed real estate appraiser can help homeowners understand just when their home's equity rises above the 20% point, as it's a difficult thing to know. It's an appraiser's job to understand the market dynamics of their area. At GZ Appraisal Services, we know when property values have risen or declined. We're masters at identifying value trends in arrington, Williamson County and surrounding areas. When faced with figures from an appraiser, the mortgage company will often drop the PMI with little trouble. At which time, the homeowner can delight in the savings from that point on.
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